President Donald Trump visited the Federal Reserve (Fed) headquarters in Washington on 24/7 and, alongside Fed Chair Jerome Powell, inspected the building's ongoing renovations. The visit followed criticism from the White House and Republicans regarding the project's escalating costs.
"We just took a look, and it looks to me like 3.1 billion USD, it's gone up a little bit, or maybe a lot. From 2.7 billion USD, now it's 3.1 billion USD," President Trump told reporters, flanked by Powell and Republican Senator Tim Scott.
Powell, known for his composure, repeatedly shook his head in disagreement and turned to Trump with a puzzled look. "I'm not aware of that. I've never heard anybody at the Fed talk about a number like that," Powell interrupted.
"Yes, it just came out," Trump said confidently. He then pulled a folded piece of paper from his pocket and handed it to Powell.
"Did we supply this?", Powell asked. "Yes," Trump replied, adding that he didn't know who prepared it.
Powell put on his glasses, reviewed the document, and identified the reason for the high figure. "Oh, you've included Martin. You've added a building," Powell said, referring to another Fed building.
Trump claimed the Martin building was under construction, but Powell corrected him, stating it "was completed 5 years ago."
"It's part of the whole thing," Trump insisted. "But it's not new construction," Powell interjected.
When asked if the Fed was concerned about further cost overruns, Powell said they were "hoping not," but were prepared. A reporter then asked Trump how he would handle a manager whose project went over budget.
"I'd fire him," Trump responded.
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President Trump (left) and Chair Powell during a visit to the Fed headquarters in Washington on 24/7. Photo: *Reuters* |
Tensions between the White House and the Fed have simmered since Trump took office in January. Over the past few months, the president has repeatedly criticized and threatened to fire Powell for not lowering interest rates. Earlier that week, Trump called Powell "slow and stubborn" and suggested interest rates should be cut by three percentage points.
Observers believe Trump might be seeking justification related to the renovation project to remove Powell. In 2019, the Fed estimated the renovation cost at 1.9 billion USD, later revising it to 2.5 billion USD. The agency attributed the 33% increase to design changes, material and labor costs, and "unforeseen factors."
Trump initially nominated Powell for Fed Chair. However, their relationship soured due to disagreements over interest rates and economic policy. Powell was later renominated for a second term by former President Joe Biden.
Nhu Tam (*Reuters, CNN*)
