President Donald Trump clashed with Federal Reserve Chair Jerome Powell on Thursday during a highly unusual joint appearance at the central bank’s Washington headquarters, turning attention to the price tag of ongoing renovations while continuing to press for interest rate cuts.
The confrontation occurred as Trump toured the construction site of two historic Fed buildings, where renovation costs have become a focal point of his criticism. Wearing hard hats, Trump and Powell faced reporters, with the president claiming the project had exceeded $3.1 billion. Powell pushed back, saying Trump had included a separate building completed five years ago.
“We’re going to take a look. We’re going to see what’s happening,” Trump said, suggesting the renovations were unnecessary and still far from finished.
The appearance marked only the fourth time a sitting president has visited the Federal Reserve since its founding. But unlike previous visits, Trump used the moment to renew calls for lower interest rates — and to suggest, though not confirm, he had dropped plans to fire Powell. “To do that is a big move, and I just don’t think it’s necessary,” he said.
Trump posted later on Truth Social that it was a “Great Honor” to tour the facility with Powell, calling the spending “substantial” but arguing the U.S. economy could absorb the cost.
Despite the softened tone, pressure from the Trump administration has intensified. Treasury Secretary Scott Bessent recently said the Fed “requires a comprehensive review,” while Trump’s budget chief Russ Vought accused Powell of mismanagement. Bill Pulte, head of the Federal Housing Finance Agency, openly called for Powell’s resignation.
Trump has repeatedly criticized the central bank for holding interest rates steady, after trimming them by one percentage point in the second half of 2024. He argues that further cuts would save the government hundreds of billions in borrowing costs, as debt payments topped $1.1 trillion last year.
The Federal Reserve is widely expected to hold rates steady at its meeting next week, with markets pricing in a potential cut in September.
Trump, who originally nominated Powell in 2017, has recently branded him “Too Late,” and suggested firing him unless “he has to leave for fraud.” But legal experts say the president’s authority to remove a Fed chair is limited, and the Supreme Court has signaled that the institution’s independence remains protected.
The visit also comes amid mounting scrutiny of Trump’s handling of classified files related to Jeffrey Epstein — a controversy the administration has not fully addressed.
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