During a visit to the Federal Reserve’s headquarters in Washington, former President Donald Trump publicly confronted Fed Chair Jerome Powell about the soaring costs of the Fed’s ongoing $2.5 billion renovation project and the central bank’s current interest rate stance.

The visit comes amid growing political tension between Trump and Powell as the Fed undertakes a controversial overhaul of two historic buildings.

Renovation Costs Rise to $2.5 Billion

Trump criticized the cost of the Fed’s renovations, suggesting the price tag exceeded $3 billion. Powell corrected the figure, clarifying that the estimate includes a separate third building renovated earlier in 2021, and the current project itself is capped at $2.5 billion.

The renovation focuses on two nearly 100-year-old buildings:

• The Marriner S. Eccles Building
• The Constitution Avenue Building

Both structures are listed on the National Historic Register and required major upgrades, including:

• Blast-resistant windows
• Hazardous materials removal
• New infrastructure systems

The budget jumped from an initial estimate of $1.9 billion due to inflation, supply chain disruptions, tariffs, and labor costs. The completion date is now pushed to fall 2027, with full occupancy expected by March 2028.

Trump Calls for Rate Cuts, Adds Political Heat

Standing beside Powell, Trump also called on the Fed to lower interest rates, stating he would “love” to see a rate cut. The Fed has held off on reducing rates amid concerns over trade tariffs and broader economic uncertainties.

Trump’s continued pressure on Powell adds fuel to ongoing speculation about the Fed’s independence. Some in Trump’s camp have even questioned Powell’s job security, pointing to the renovation cost overruns as a potential reason for removal.

White House Budget Director Russell Vought claimed Powell may have violated oversight procedures. Powell denied any such claims, asserting the Federal Reserve operates independently and voluntarily follows oversight where appropriate.

Fed Oversight, Delays, and Internal Reviews

Powell emphasized the need for renovations, noting the buildings were aging and posed safety concerns. He also clarified that recent changes to construction plans were aimed at reducing complexity and avoiding further delays.

The Fed has its own budget, separate from federal government control, making external oversight more difficult. However, Powell confirmed that the project is now under a second internal review by the Fed’s inspector general to ensure accountability.