President Donald Trump confronted Federal Reserve Chairman Jerome Powell on Thursday over ballooning costs tied to the central bank’s controversial renovation project—now reportedly totaling $3.1 billion.
During a tour of the Fed’s Washington headquarters, both men wore hard hats as Trump raised the issue on camera, catching Powell visibly off guard.
“It went up a little bit — or a lot,” Trump said, as Powell grimaced and shook his head.
Q: Are there things the chairman can say to you today that would make you back off some of the earlier criticism?
POTUS: Well, I’d love him to lower interest rates. Other than that, what can I tell you? pic.twitter.com/9NlrRizfbj
— CSPAN (@cspan) July 24, 2025
Trump: “Is That From You?”
Trump held up a document to back his $3.1 billion figure. Powell, appearing surprised, said he didn’t recognize the number.
Senate Banking Chairman Tim Scott (R-SC), who joined the visit, confirmed the same figure was in his own notes.
When Powell asked if the number came from the Fed itself, Trump replied it did.
Powell reviewed the sheet and pointed out, “You just added in a third building.” Trump pushed back, saying, “It’s part of the overall work.”
Powell insisted the building had been constructed five years ago and wasn’t new.
Trump Presses on: “More Overruns Coming?”
Trump then asked directly whether more cost overruns were expected.
“Don’t expect them,” Powell responded. “We’re ready for them… We expect to be finished in 2027.”
The Fed chair added that the project has a small reserve for contingencies.
Trump lightened the mood briefly by removing his helmet and joking, “Nice to take these off every once in a while.” Powell followed, sticking out his tongue playfully and removing his own helmet.
Trump Still Critical Over Interest Rates
Despite nominating Powell in 2017, Trump has been sharply critical of the Fed chair’s refusal to cut interest rates.
Asked by a reporter if Powell could say anything to change that criticism, Trump responded:
“Well, I’d love him to lower interest rates. Other than that, what can I tell you?”
He then gave Powell a friendly pat on the back. Powell smiled and chuckled.
Renovation Costs Under Scrutiny
The project originally had a price tag of $1.9 billion, but costs have soared by over $1 billion.
Trump’s administration has raised concerns, especially amid high interest rates and inflation. Powell has since requested the Fed’s inspector general review the project.
Although The New York Times recently reported that Trump drafted a letter to fire Powell, the president has so far held back—though his patience appears to be wearing thin.
Powell’s current term ends in May 2026.
