Fed chair tells Trump he has his facts wrong on central bank’s renovation costs
Jul 24, 2025, 4:16 PM
Federal Reserve Chairman Jerome Powell looks over a document of cost figures as President Donald Trump watches during a visit to the Federal Reserve, Thursday, July 24, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)
Credit: ASSOCIATED PRESS
(AP Photo/Julia Demaree Nikhinson)
WASHINGTON (AP) 鈥� President Donald Trump rattled off a number to shame Federal Reserve Chair Jerome Powell about the renovation costs of the Fed’s headquarters 鈥� and America’s central banker dared to correct him. Live on video.
The exchange occurred Thursday in the plywood-sheathed headquarters of the Fed that are still under construction. Both men wore white hard hats and dark suits. Trump spoke with utter certainty, while Powell skeptically cocked his eyebrows.
Trump claimed the renovation project was over budget at a $3.1 billion price tag, while Powell pushed back and said the president was including an extra building that had been renovated five years ago. The Fed has maintained that renovation costs are $2.5 billion, an increase from $1.9 billion.
鈥淚t looks like it鈥檚 about $3.1 billion, went up a little bit or a lot,鈥� said Trump.
Powell shook his head in disagreement. 鈥淚鈥檓 not aware of that, Mr. President,鈥� he responded.
鈥淚t just came out,鈥� said Trump, pulling a folded piece of paper from his suit coat鈥檚 pocket.
鈥淚 haven鈥檛 heard that from anybody at the Fed,鈥� Powell said.
鈥淚t just came out,鈥� Trump repeated.
After some back and forth, Powell put on his glasses, stared at the numbers on the paper from Trump and asked, 鈥淭his came from us?鈥�
鈥淵es,鈥� Trump said.
鈥淎re you including the Martin renovation?鈥� Powell said. 鈥淵ou just added in a third building is what that is. That鈥檚 a third building.鈥�
鈥淚t鈥檚 a building that鈥檚 being built,鈥� Trump said.
鈥淣o, it was built five years ago,鈥� Powell said.
Trump ended his tour afterward by saying he wanted the renovation to be completed and Powell to aggressively cut benchmark interest rates. The Fed chair has refrained from responding to Trump’s taunts on social media, saying the Fed can afford to be patient to monitor the impact of the president’s tariffs on inflation.
The exchange followed months of criticism by Trump of Powell as being 鈥淭oo Late鈥� on rate cuts and an accompanying pressure campaign to get the central bank head to step down.
White House deputy chief of staff James Blair later said that Powell was 鈥渟plitting hairs” on the renovation costs, though in this case it would be a $600 million hair about a building that Trump thought was still under construction.
鈥淭here鈥檚 no way around it,” Blair said. “The cost overrun is massive.鈥�
