Donald Trump Criticizes Fed HQ Renovation Costs, Calls for Interest Rate Cuts

Donald Trump engaged in a heated public exchange with Federal Reserve Chair Jerome Powell on Thursday during a rare visit to the Fed's Washington headquarters, criticizing the escalating costs of its ongoing renovation project. However, Trump later adopted a more conciliatory tone on social media, asserting that "America can afford just about anything."

The Republican frontrunner, accompanied by Powell in hard hats on the construction site, alleged that the central bank's refurbishment project's price tag had surged to $3.1 billion, up from a previously reported $2.5 billion. Trump claimed the project was wasteful and poorly managed.

"It looks like it’s about $3.1bn – it went up a little bit or a lot," Trump stated.

A visibly irritated Powell countered, clarifying that the $3.1 billion figure encompassed past expenses from the Martin Building, a separate Fed property renovated five years prior, and was "not new."

This confrontation underscores Trump's persistent campaign to pressure the Federal Reserve into cutting interest rates, a policy he believes is crucial for economic recovery. He has frequently criticized Powell, at times labeling him a "numbskull," and has argued that current rates are hindering American economic growth.

Trump's Tone Shifts on Social Media

Following the contentious exchange, Trump’s tone softened in a Truth Social post. He described the tour as a "Great Honor" and, while acknowledging "substantial" cost overruns, stated, "our Country is doing very well and can afford just about anything — Even the cost of this building!" He also drew a comparison to his own real estate ventures, highlighting the lower cost and larger scale of his redevelopment of the Old Post Office in Washington.

The post concluded with a renewed call for monetary easing: "With all of that being said, let’s just get it finished and, even more importantly, LOWER INTEREST RATES!"

Political Pressure Intensifies Ahead of Fed Meeting

Trump's visit to the Fed comes less than a week before the central bank's 19 policymakers are set to convene for a two-day rate-setting meeting. While the Fed is widely expected to maintain its benchmark interest rate in the 4.25%-4.50% range, Trump has consistently demanded a three percentage point reduction in rates and has previously suggested the possibility of firing Powell.

Fed staff, in a briefing for reporters, attributed the high renovation costs to essential security features, including blast-resistant windows, along with tariffs and escalating material and labor expenses.