Fed Chair Jerome Powell Rebukes Trump Over Fed Project Costs

During a recent tour of the Federal Reserve’s Washington headquarters renovation site, President Donald Trump confronted Fed Chair Jerome Powell over alleged construction cost overruns, claiming the project cost had risen to $3.1 billion. Powell promptly corrected Trump, explaining that Trump had mistakenly included an older building's renovation completed five years ago, leading to an awkward exchange that went viral. This encounter highlighted ongoing tensions between Trump and Powell, with Trump frustrated over the Fed’s reluctance to cut interest rates to stimulate the economy, despite Powell's warnings about inflation risks. The president has publicly threatened to fire Powell, though the Supreme Court has indicated the Fed Chair’s independence limits such actions. While Trump attempted to use the renovation costs as leverage, Powell’s calm and factual responses undercut the president’s assertions, earning praise from observers for fact-checking Trump in real time. The episode underscores the fraught relationship between the White House and the Federal Reserve amid economic policy disagreements.