President Donald Trump said he would not fire Jerome Powell following the federal reserve conflict.
Powell fixes Trump with Fed renovation costs
President Donald Trump cited the costs of reforming the Federal Reserve during his rare visit, urging Chairman Jerome Powell to push him back.
WASHINGTON – President Donald Trump and Federal Reserve Chairman Jerome Powell clashed when they toured ongoing renovations to the Fed headquarters, and the chairman revised the president on some of his claims regarding cost overruns.
Despite past threats to fire Powell on the project, Trump left the Federal Reserve building, calling it a productive meeting, saying it wasn’t enough to justify the chairman’s firing.
“I don’t think it’s necessary,” Trump said.
The president’s unusual presidential visit to the Federal Reserve Building came when Trump accused Powell of being a potential fraud linked to the bulging costs of renovations to its $2.5 billion headquarters at the National Mall. Trump and several White House advisers requested a tour to inspect the job in person.
But when the president claimed the project had swelled to $3.1 billion, it was Powell being pushed back to Trump before the tour began.
“It went up a little — or a lot went up,” Trump told Powell, the man wearing a hard white hat.
Powell shook his head at disagreement. “I don’t know that, Mr. President. I haven’t heard about it from anyone at the Fed.”
The president handed him a paper. At first glance, Powell informed the president that his dollar figures also include the costs of renovating the Martin Federal Building, which was completed in 2020.
“You’re including a Martin renovation. You just added it to the third building, and that’s what it is,” Powell said.
“I know, but it’s a building that’s been built,” Trump said.
Powell replied: “No, it was built five years ago. Martin was finished five years ago.”
Fed explanations regarding cost overruns
The original cost of the current renovation has increased to $2.5 billion after being estimated at $1.9 billion in 2019. The Fed said the increase of over 33% was due to other “unexpected conditions” such as design changes, material costs, equipment, labor and more asbestos than expected toxic contamination in the soil.
Powell told Trump that the Fed has not anticipated an additional cost overrun and is hoping that the renovation will be completed in 2027.
Trump has been sticking to the costs of Fed renovations recently, but the president has been criticizing Powell for months for ignoring calls to stabilize interest rates, lowering them, and for yelling “too late” to not act.
“Well, I hope he lowers interest rates. Other than that, what can I tell you?” Trump said when asked if there was anything he could do to get Trump back from his criticism. “The country is booming and interest rates are the last small notch.”
Powell cites the expected increase inflation rate from Trump’s massive tariffs as a reason for not changing prices. Inflation accelerated in June, with the Labor Bureau announced on July 15th, with prices rising 2.7% over the past 12 months. It was the highest annual inflation rate since February.
Trump says cost overruns are not fired
Trump and Powell toured the facility in less than an hour. The group has joined the Republican Senators of South Carolina and North Carolina Tom Tillis, White House officials, Bill Plute, Fannie Mae and Freddie Mac, construction experts and members of Trump’s appointment with the National Capital Planning Committee.
Before they began, Trump was asked by a reporter what he would do during his long career as a real estate developer with a project manager that exceeded the construction budget.
“Generally speaking, what do I do? I’ll fire him,” Trump said.
However, after the tour ended, Trump gained a very different tone. He told reporters that he saw “a very luxurious situation going on” with the renovation, called the meeting “very productive” and insisted that he was free of tension and did not imagine Powell’s firing.
“I don’t want to put that in this category,” Trump said when asked if the project was a “burning crime.”
Trump later said he believes Powell will “do the right thing” and lower interest rates. “As the expression progresses, it may be a little too late.” But I think he’s going to do the right thing. ”
Trump nominated Powell as Fed Chairman in 2017. He was confirmed in the Senate in January 2018 for a four-year term, and was confirmed again in 2022 after former President Joe Biden emerging him into the post. Powell’s term as chairman ends in 2026, but his term as a member of the Fed’s board will run until the end of 2028.
Reach Joey Garrison with X @joeygarrison.
