Trump, Powell clash at Fed headquarters over $3B renovation cost amid rate standoff

Hind Al Soulia - Riyadh - WASHINGTON — US President Donald Trump ramped up pressure on the Federal Reserve on Thursday, publicly sparring with Fed Chair Jerome Powell during a rare visit to the central bank’s headquarters over the ballooning costs of its renovation and the refusal to cut interest rates. Wearing hard hats and flanked by senior officials, Trump criticized the project’s cost—claiming it had reached $3.1 billion—well above the Fed’s $2.5 billion figure. Powell immediately disputed the claim, saying Trump had mistakenly included costs from a different building renovated years ago. The public disagreement took place in front of TV cameras on-site at the Fed’s historic Marriner S. Eccles Building, currently undergoing extensive upgrades. The visit marked an unusual intrusion of presidential politics into the central bank’s traditionally independent domain. “We have to get the interest rates down,” Trump later said, after Powell exited the stage. “People are pretty much unable to buy houses.” The president has intensified his calls for rate cuts ahead of the Fed’s meeting next week. However, Powell and Fed officials have signaled they’re likely to hold rates steady at 4.3%, with a possible cut in September. Trump appeared to tone down recent threats to fire Powell, whose term ends in May 2026. Asked if the project’s overruns amounted to a “fireable offense,” Trump said, “I don’t want to put this in that category.” “I just want to see one thing happen, very simple: Interest rates come down,” he said. The Federal Reserve later gave journalists a rare tour of the site, showing structural upgrades including blast-resistant windows, seismic walls, and newly excavated underground levels. Fed staff cited security standards, historic preservation rules, and spiking construction material costs —exacerbated by Trump’s own tariffs on steel and aluminum— as drivers of the increased budget. In a post on Truth Social, Trump said: “The cost overruns are substantial but, on the positive side, our Country is doing very well and can afford just about anything—even the cost of this building!” Fed officials said the original 2022 estimate was $1.9 billion. They attributed the increase to inflation, expanded scope, and underground construction mandated by Washington D.C.’s building height restrictions. — Agencies