Trump Tussles with Powell Over Fed Renovation But Says He Won’t Fire Him
Trump tussles with Powell during a visit to the Federal Reserve building, but later said he has no plans to fire the Fed chair.
President Donald Trump and Jerome Powell had a disagreement while touring the Federal Reserve’s renovation site. Trump claimed that the project’s cost had jumped to $3.1 billion. But Powell corrected him and said the number includes a separate building that was finished years ago.
“That was the Martin building. It was done five years ago,” Powell explained.
This moment showed how Trump tussles with Powell over the project’s cost. Trump had earlier blamed Powell for letting the renovation costs rise. But after the tour, he called the meeting “very productive” and said there was no reason to fire Powell.
Why the Fed Renovation Costs Increased
The renovation of the Federal Reserve’s two buildings was first expected to cost $1.9 billion back in 2019. But now, it’s costing $2.5 billion. The Fed says the increase happened because of design changes, higher costs of materials and labor, and unexpected problems like extra asbestos and soil contamination.
Powell told Trump that the project is expected to finish in 2027 and there won’t be more cost increases.
“We’re well along, as you can see,” Powell said.
Trump Softens His Tone After the Tour
Before the tour, when asked what he would do with a manager who went over budget, Trump said:
“Generally, I’d fire him.”
He also pointed out costly parts of the project like basement parking as unnecessary. But after seeing the progress, he changed his view. He said the project looked “very luxurious” and there was no tension with Powell.
This Trump tussles with Powell situation ended with Trump saying:
“I don’t want to put that in this category,” meaning it’s not something Powell should be fired over.
Trump Wants Lower Interest Rates
Trump has often criticized Powell — not just about the Fed building, but also about interest rates. He wants the Fed to lower rates, saying it will help the economy grow faster.
“The country is booming, and interest rates are the final little notch,” Trump said.
Powell, however, has kept the rates steady, pointing to inflation as a reason. In June, prices rose 2.7% in one year — the highest since February — according to the U.S. Labor Department.
Powell’s Position at the Fed
Trump appointed Powell as the Fed chair in 2017. He started his term in 2018. Later in 2022, President Joe Biden also kept him in the same role. Powell will remain chair until 2026 and on the board until 2028.
The Trump tussles with Powell meeting included other people too — like Senators Tim Scott and Thom Tillis, Fed officials, real estate experts like Bill Pulte, and others from the construction team.
Conclusion
Even though Trump tussles with Powell over money and interest rates, he ended the tour in a positive mood. He praised the renovation and said he believes Powell will “do the right thing” going forward.