Donald Trump Clashes With Powell Over Fed Renovation, Rate Cuts in Rare Visit

President Donald Trump made a high-profile visit to the Federal Reserve’s headquarters Thursday, ramping up public pressure on Chair Jerome Powell to deliver a large interest rate cut and fiercely criticizing the management of a $2.5 billion renovation project at the central bank.

Trump, who recently called Powell a “numbskull,” challenged both the cost estimates and oversight of the refurbishments for the nearly century-old buildings, sparking a visibly tense exchange. “The cost overruns are substantial but, on the positive side, our country is doing very well and can afford just about anything,” Trump later posted on social media.

Trump has repeatedly urged the Fed to slash its policy rate by 3 percentage points or more, insisting borrowing costs should fall despite a steady economy. “I’d love him to lower interest rates,” he told reporters, with Powell standing by, expressionless.

Trump confronted Powell about the project’s estimated price tag, claiming it had ballooned to $3.1 billion. Powell rejected the figure, noting Trump mistakenly included a third building already renovated years ago.

White House Criticism:

Senior administration officials accused the central bank of mismanagement and hinted at possible fraud in the project, calling for greater accountability. Senate Banking Committee Chair Tim Scott, who also joined the Fed tour, issued a letter to Powell demanding detailed answers about the renovation.

The renovation—the first full overhaul since the 1930s faced additional costs due to toxic materials like asbestos and enhanced security requirements. Construction, begun in 2022, is expected to finish by 2027, with Fed staff moving in by early 2028. Fed officials say the upgrades are essential and designed for long-term savings and modern safety standards.

Thursday’s political drama generated only a mild reaction on Wall Street. Treasury yields edged up on strong labor market data, and stocks closed flat, a sign investors expect Fed policy to remain unchanged in the near term.

The event marks only the third presidential visit to the central bank headquarters since its founding, highlighting the rarity—and controversy—of Trump’s direct intervention. Historically, presidents have respected the Federal Reserve’s independence and refrained from public rate-setting advocacy.

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