Trump, Powell Clash Publicly Over Fed Spending

President Donald Trump publicly challenged Federal Reserve Chair Jerome Powell during a joint tour, claiming the Fed's headquarters renovation cost $3.1 billion, while Powell corrected him in real time, stating the official figure was $2.5 billion and that the higher number included a separate building. The exchange became tense, with Trump comparing the situation to his real estate experience and suggesting he would fire managers for overruns, though he later indicated he was not seriously seeking Powell's removal. The incident featured Trump handing Powell a folded document and making a joking gesture, underscoring the personal and public nature of their ongoing conflict. The dispute has heightened concerns about the Federal Reserve's independence and its ability to conduct monetary policy without political interference. Financial markets reacted negatively to the episode, reflecting unease over the persistent tensions between the White House and the Fed. The conflict comes amid continued administration pressure for interest rate cuts.