Trump, Powell Clash Over $2.5 Billion Federal Reserve Renovation
Trump, Powell Clash Over $2.5 Billion Federal Reserve Renovation
In a moment that quickly turned tense and symbolic, former U.S. President Donald Trump confronted Federal Reserve Chair Jerome Powell during a visit to the central bank’s Washington, D.C. headquarters, challenging the cost and scope of the institution’s $2.5 billion renovation project.
The incident occurred during Trump’s tour of the Federal Reserve’s Marriner S. Eccles Building, which is currently undergoing extensive renovations expected to span several years. While speaking to reporters and construction staff, Trump claimed the project’s costs had ballooned to as high as $3.1 billion, accusing the Fed of wasteful spending and calling the building “a very luxurious upgrade.”
Chair Powell swiftly pushed back, stating that the former president had his facts wrong. According to Powell, the renovation project still stands at $2.5 billion and does not include the additional building Trump referenced, which was already renovated and completed years ago. Powell noted that the current expenses cover necessary structural upgrades, including seismic reinforcements, security enhancements, and preservation work on the historic site.
The exchange, while brief, laid bare the long-running friction between the two men. Trump has been increasingly vocal in recent weeks, pressuring the Federal Reserve to slash interest rates dramatically ahead of the 2025 presidential election. This public clash over the renovation appeared to serve as a broader political signal, with Trump casting the Fed as fiscally irresponsible in a bid to gain leverage over monetary policy decisions.
Despite the charged atmosphere, Trump later told reporters that he had no plans to fire Powell, saying, “I don’t think it’s necessary.” However, he admitted that several of his advisers have floated the idea, signaling lingering dissatisfaction with the Fed’s leadership.
Analysts see the confrontation as part of a broader effort by Trump to erode the central bank’s institutional independence a strategy that may resonate with parts of his political base but raises concern among economists and financial markets. Powell, for his part, stood firm, reiterating the importance of maintaining objective, data-driven policy decisions regardless of political pressure.
The Federal Reserve’s renovation, first approved in 2022, includes overhauling key structural and safety elements in the Eccles Building and an adjacent site. Officials maintain that the $2.5 billion price tag reflects the complexity of the work, which involves historic preservation, modern safety standards, and underground construction.
While the renovation dispute may seem like a matter of brick and mortar, it underscores the deeper and ongoing power struggle between political forces and an institution meant to operate independently. For now, the Fed stands by its figures and its chairman.
