A Thursday afternoon tour of the remodeling project at the Federal Reserve’s headquarters in Washington, DC, put the long-simmering conflict between President Donald Trump and Fed Chair Jerome Powell on full public display.
When discussing the whole cost of the Fed’s refurbishment project, the two men’s tension became clear. Trump quoted a cost of more than $3 billion, which is more than the projected $2.5 billion.
Powell answered, “I’m not aware of that,” as if taken aback by Trump’s remark.
Powell went on to note that a third Fed building that was renovated a few years ago and reopened in 2021 was included in Trump’s estimate.
“You just added in a third building is what that is,” Powell said. “It was built five years ago.”
It’s uncommon for a president to visit the Fed’s headquarters, according to ABC News. Powell made the last-minute announcement about his attendance on social media. Other attendees were White House staffers James Blair and Will Scharf, who wore white hard hats for the tour, OMB Director Russell Vought, FHFA Director Bill Pulte, and Republican Senators Tim Scott of South Carolina and Thom Tillis of North Carolina.
Since central bankers have avoided lowering interest rates this year because they want to wait to see how Trump’s tariffs impact the economy before considering rate reduction, the Fed’s construction project has become a pretext for the Trump administration to increase pressure on Powell to do so.
“I’d love him to lower interest rates,” Trump said in a response to a reporter’s question while standing next to Powell.
Originally planned as a chance for Trump’s team to view a refurbishment project of the Fed’s historic headquarters, the visit has gone considerably above budget and may have breached planning rules, according to the White House.
Without calling the Fed chief “too Late,” as he usually does, Trump wrote on social media following the tour that “it was a Great Honor” to visit the renovation site with Powell.
“I’ll be watching and, hopefully, adding some expertise,” Trump wrote. “Let’s just get it finished and, even more importantly, LOWER INTEREST RATES!”
Hours before, the Fed provided a rare preview of the construction project to a few press outlets.
George W. Bush was the last president to visit the Fed headquarters, which is located along the National Mall just a few steps from the White House. He did so in 2006 to see Ben Bernanke’s swearing-in ceremony.
Presidents have generally refrained from taking any actions that can be interpreted as interfering with the independence of the central bank, especially when it comes to the delicate topic of interest rates.
At a meeting next week, the Fed is anticipated to maintain current interest rates.
To read more, click here.
