In a rare visit to the Federal Reserve headquarters on Thursday, former President Donald Trump reignited his public criticism of Fed Chair Jerome Powell—this time over what he called “exorbitant” renovation costs for the Fed’s historic buildings.
Wearing a hard hat and surrounded by construction equipment, Trump claimed the project’s costs had soared to “about $3.1 billion.” Powell, standing next to him, shook his head and replied, “I haven’t heard that.”
Until recently, the renovation project had attracted little attention. But that changed two weeks ago when Trump’s budget chief, Russell Vought, vowed to investigate. On Thursday, Trump took the opportunity to personally inspect the ongoing $2.5 billion upgrade at the Fed’s Washington, D.C. headquarters.
The project, now under scrutiny for cost overruns, has become a flashpoint for some White House officials. They see Powell’s handling of it as a potential pretext for his removal—especially after a Supreme Court ruling clarified that presidents may not have full authority over the Federal Reserve.
At one point, Trump handed Powell a note detailing cost concerns. Powell quickly reviewed it and clarified that the higher figure included a separate five-year-old project.
Asked whether the project was grounds for firing Powell, Trump said, “I don’t want to put that in this category,” adding, “I just don’t think it’s necessary” to dismiss him.
This visit came amid continued public criticism of Powell by Trump, who has long favored lower interest rates to boost the economy. Powell, however, argues that inflation—driven in part by Trump’s tariffs—necessitates keeping rates steady. He even noted earlier this month that if not for those tariffs, the Fed might have already cut rates.
When asked what Powell could do to ease tensions, Trump responded, “Lower rates,” while giving Powell a friendly pat on the back.
“He’s showing us around, showing us the work. ... I don’t want to be personal. I would just like to see it get finished,” Trump added. He described their conversation on interest rates as “productive,” saying Powell would share his views at the upcoming Fed press conference.
The Fed is set to announce its next interest rate decision in six days. It's widely expected that rates will remain unchanged. Powell will speak to the press afterward.
This more measured tone from Trump came just days after he seemed ready to fire Powell, even floating the idea to Republican allies. While a White House official told NBC News it was likely, Trump later walked back the idea, calling it “unlikely,” but adding, “I don’t rule out anything.”
Markets have responded to the uncertainty, with the U.S. dollar falling 10% during Trump’s wavering stance on Powell’s future.
It’s unclear when the Fed visit was added to Trump’s schedule—only appearing on the calendar late Wednesday night. The White House has tried to downplay speculation about Powell’s firing, even as Trump continued to criticize him online. Notably, Trump appointed Powell during his first term.
“There’s nothing that tells me that [Powell] should step down right now. He’s been a good public servant,” Treasury Secretary Scott Bessent told Fox Business on Tuesday. That same day, Trump said Powell had “done a bad job,” but noted Powell’s term ends in May: “He’ll be out pretty soon anyway.” By Wednesday, Bessent confirmed on MSNBC that Trump did not plan to fire Powell.
Presidential visits to the Fed are highly unusual. The last one was George W. Bush in 2006 for Ben Bernanke’s swearing-in. Before that, only Gerald Ford in 1975 and Franklin D. Roosevelt in 1937 had made the trip.
The Fed’s renovation project has drawn sharp criticism from the administration, with claims of “lavish” spending on VIP dining rooms, terraces, designer elevators, and high-end marble.
But Powell has denied these claims, insisting they are misleading. He told the Senate Banking Committee in June: “There’s no [VIP] dining room. There’s no new marble. We took down the old marble, we’re putting it back up.” He added that while some new marble was required where the old broke, no “special” elevators were being installed—just replacements for decades-old ones.
In response to the controversy, the Fed published a FAQ on its website, explaining that rising costs are due to expensive raw materials, coordination with oversight agencies, and unexpected levels of asbestos in the building. Ironically, some of the requested upgrades—like more marble—were pushed by review agencies that included Trump-appointed members.
By the end of the tour, Trump appeared less critical.
“There’s always Monday morning quarterbacking. I don’t want to be that,” he said, although he noted the renovation seemed “luxurious.” Asked about mismanagement, Trump avoided a direct answer but said he had no personal issues with Powell.
“No tension,” Trump declared. “No tension here.”
Later that day, Trump posted on Truth Social: the renovation “would have been much better if it were never started,” but added, “I’ll be watching and, hopefully, adding some expertise.”
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