During a visit to the Federal Reserve, President Donald Trump and Fed Chair Jerome Powell engaged in a notable exchange regarding the renovation costs of the Fed’s headquarters. Trump inaccurately stated that the renovation’s cost had escalated to $3.1 billion, prompting Powell to clarify that this figure included expenses from the renovation of another building, the Martin Federal Building, which was completed five years prior. Powell asserted that the current renovation’s estimated costs had risen from $1.9 billion to $2.5 billion due to design changes, material costs, labor, and unexpected conditions such as asbestos and soil contamination.
Despite previous threats to fire Powell over the renovation, Trump left the meeting expressing satisfaction, stating it was “very productive” and suggesting that there wasn’t sufficient grounds for termination. He acknowledged the need for Powell to lower interest rates, showcasing ongoing tension over monetary policy, particularly as inflation concerns rise. The president remarked, “Well, I’d love him to lower interest rates,” while Powell has refrained from making changes, citing potential inflation risks linked to Trump’s tariffs.
Trump, who nominated Powell as Fed Chair in 2017 and later saw him re-nominated by President Biden, indicated confidence that Powell would ultimately “do the right thing” regarding interest rates. The meeting, attended by several officials and construction professionals, concluded with Trump asserting that he did not wish to categorize the renovation costs as grounds for firing Powell, emphasizing his belief that the project indicated a “very luxurious situation.”
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