During a recent press briefing while touring the Federal Reserve’s renovation project, President Donald Trump stated that the cost had risen to $3.1 billion — $600 million more than previously reported. The normally composed Federal Reserve Chair, Jerome Powell, was visibly surprised and shook his head at Trump’s claim. It escalated into a tense moment as Trump handed Powell a document with what he claimed were updated figures.
Powell examined the paper but expressed confusion, eventually clarifying that Trump was mistakenly counting an earlier renovation of a Fed building, completed five years ago, as part of the ongoing project’s costs. After an awkward silence, Powell corrected Trump, highlighting that the Martin building involved was not part of the current renovations. Despite the misunderstanding, Trump continued to assert that the building was part of the overall project.
This incident showcased Powell’s assertiveness during a time when he faced significant pressure from Trump, who has publicly attacked Powell regarding interest rate policies. Despite their contentious history, including recent criticisms from Trump regarding high interest rates, Trump lightened the mood by playfully encouraging Powell to lower those rates, even giving him a pat on the back.
Post-tour, Trump’s tone softened significantly. He claimed that he wouldn’t want to fire Powell over the cost overruns and expressed a desire to see the renovation completed. He dismissed the notion of any tension between them, stating he felt positively about their relationship, despite their earlier disagreement.
Trump also addressed the ongoing interest rate issue, suggesting he had significant concerns regarding inflation, linked to his trade policies. However, he expressed faith in Powell’s judgment, stating he believed in the chairman’s ability to make the right decisions.
Looking ahead, Trump indicated that while he has confidence in Powell, he has intentions to replace him when his term ends in May 2026, mentioning he had potential candidates in mind. Central bank officials are scheduled to meet soon to discuss the Fed’s next policy moves, with the ongoing debate about interest rates at the forefront of their discussions.