Trump Presses Powell on Fed Renovation Costs During Rare Visit

President Donald Trump made an unusual visit to the Federal Reserve on Thursday, where he questioned Chair Jerome Powell about the rising costs of the central bank's headquarters renovation, now estimated by the White House at $3.1 billion. During the tour, Trump, wearing a hard hat, said the construction expenses had become excessive, a claim Powell challenged, stating, "I haven't heard that." Trump handed Powell a document outlining the costs, to which Powell responded that it included a five-year-old project.

The renovation, which has drawn recent scrutiny from Republican officials, is currently budgeted at $2.5 billion. White House officials have raised concerns about cost overruns, with some suggesting the issue could be used as grounds for removing Powell. However, when asked if the project was a fireable offense, Trump replied, "I don't want to put that in this category," and added, "I just don't think it's necessary" to dismiss Powell.

Trump has repeatedly criticized Powell for maintaining current interest rates, favoring rate cuts to stimulate the economy. Powell has argued that inflationary pressures, partly driven by tariffs imposed by the Trump administration, justify keeping rates steady. Earlier this month, Powell said the Fed would have cut rates if not for the expected impact of import taxes.

During the visit, Trump described his discussion with Powell as "productive" and said Powell would share his views at the next Fed news conference. The central bank is expected to leave rates unchanged at its upcoming policy meeting. Despite recent speculation that Trump might fire Powell, the president said it was "unlikely" but did not rule out the possibility.

Treasury Secretary Scott Bessent stated earlier this week, "There's nothing that tells me that [Powell] should step down right now. He's been a good public servant." Trump, who appointed Powell, has alternated between criticism and praise, recently saying Powell "has done a bad job" but noting his term ends in May.

The Federal Reserve has defended the renovation, stating that increased costs are due to higher prices for materials, regulatory consultations, and unexpected asbestos removal. Powell told the Senate banking committee last month that claims of "VIP" amenities and new marble are inaccurate, explaining that old marble is being reused and no special elevators are being installed.

After the visit, Trump appeared less critical, saying, "There's always Monday morning quarterbacking. I don't want to be that," and described the renovation as a "luxurious situation." When asked about any mismanagement, Trump did not give a direct answer but said, "No tension. No tension here." The Fed declined to comment on the visit.