Donald Trump made an unusual visit on Thursday to the renovation works at the Federal Reserve headquarters in Washington, amid a growing controversy over the threats and insults by the President of the United States against Jerome Powell because he refuses to lower interest rates.
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A few days ago, Trump once again criticized the work of the Fed’s president by stating that high interest rates are cooling the real estate market, thus harming American families and the country.
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How was the confrontation between Trump and Powell?
Accompanied by members of his administration and Congress, Trump took the opportunity to directly confront the Federal Reserve chairman about what he considered a significant overcharge in the works and even accused possible “fraud.”
The exchange between them occurred before starting the tour of the facilities, when the President of the United States took out a paper and stated that the cost of the project had reached 3.1 billion dollars, far exceeding the currently budgeted 2.5 billion dollars. As Trump spoke, the Fed President shook his head.
Then Powell took the paper showing Trump and contradicted him right away, explaining that the mentioned figure included the renovation of the Martin Federal Building, completed in 2020 and not related to the current project.
Project details and previous criticisms of Trump
The renovation, which encompasses two historic buildings on the National Mall, was initially estimated at 1.9 billion dollars in 2019, according to USA Today. However, the cost increased by 33% due to design modifications, rising material and labor costs, as well as unexpected findings such as additional asbestos and soil contamination.
Powell assured Trump that no further cost overruns are anticipated and that the project is expected to be completed in 2027. During the tour, Trump expressed concern about alleged underground expansions and parking lots that he described as “unnecessary and costly.” However, at the end of the visit, he adopted a more conciliatory tone.
“I saw a very luxurious situation in progress. It was a very productive meeting,” Trump declared to journalists, dismissing possible tensions and ensuring that he does not consider the remodeling as a sufficient reason to dismiss Powell.
Political context and previous tensions
Although in the past Trump threatened to remove Powell over budgetary issues and monetary policy decisions, this time he said he does not consider it necessary. "I don’t want to put this in that category," he replied when asked if the cost of the renovation was a reason for dismissal.
Powell, appointed by Trump in 2017 and confirmed by the Senate in 2018, was nominated again by President Joe Biden for a second term in 2022. His current term as Federal Reserve Chair concludes in May 2026, although he will continue to be part of the Board until 2028.