Federal Reserve Chair Jerome Powell fact-checked Donald Trump and told him he was wrong about a construction project as the president visited the central bank’s headquarters.
On Thursday, Trump made a rare visit to the headquarters in Washington to view a construction site after suggesting funds for the renovation had been mismanaged.
Highlights
- Fed Chair Powell fact-checked Trump over the alleged $3.1bn cost for Fed building renovations, clarifying the extra building was added years ago.
- Trump visited the Fed HQ construction site, criticized renovation costs, and pushed Fed Chair Powell to cut interest rates.
- Powell denied the cost overruns Trump cited, explaining the increased figure includes a previously built third building.
The visit came as Trump attempted to pressure the Fed chair to cut interest rates.
Jerome Powell fact-checked Donald Trump at a construction site visit
Image credits: Chip Somodevilla/Getty Images
Standing on the construction site, wearing hard hats, Trump asked Powell to come and stand next to him before alleging that the bill for the renovations had gone over.
“It looks like it’s about $3.1bn, it went up a little bit or a lot,” Trump said. “So the 2.7 is now 3.1.”
Appearing visibly confused, Powell shook his head at the president and looked at him, startled as he claimed the cost had risen to $3.1 billion.
“I’m not aware of that,” Powell responded, to which Trump replied, “Yeah, it just came out.”
“I haven’t heard that from anybody at the Fed,” Powell continued as Trump pulled out a white letter showing the costs from his jacket pocket.
After assessing the letter, Powell told Trump, “You just added in a third building. That’s what that is, it’s a third building.”
Trump insisted that the building was added because “it is being built.”
But Powell quickly fact-checked his claim. “It was built five years ago,” he said.
“It is part of the overall work,” the president asserted.
Image credits: Chip Somodevilla/Getty Images
“It is not new,” an irritated Powell responded as he told Trump they were not expecting to go further over budget.
Trump, who has nicknamed Powell “Too Late” in numerous social media posts and called him “dumb,” was asked by a reporter what he would do if a project manager went over budget.
“I’d fire him,” he responded.
However, Trump appears to have walked back on previous suggestions that he could fire Powell, with that idea jolting stock markets.
Trump has repeatedly called for Powell to lower interest rates
Image credits: The White House
The president has continuously called for Powell to lower rates, but he has refused based on the uncertainty surrounding tariff impact on inflation and employment.
In a post on Truth Social after the tour, Trump described it as a “great honor” but again pushed for interest rates to be lowered.
“It’s got a long way to go, would have been much better if it were never started, but it is what it is and, hopefully, it will be finished ASAP,” he wrote.
“The cost overruns are substantial, but, on the positive side, our Country is doing very well and can afford just about anything — Even the cost of this building!
Image credits: Donald J Trump
“I’ll be watching and, hopefully, adding some expertise. As everyone knows, I renovated the Old Post Office on Pennsylvania Avenue, and it was a roaring SUCCESS.
“The total Construction cost was a small fraction of the Fed Building’s cost, and it is many times the size. With all of that being said, let’s just get it finished and, even more importantly, LOWER INTEREST RATES!”
The Fed now pegs the renovation cost at approximately $2.5 billion, about $600 million more than initial projections, citing added expenses from structural challenges, inflation, tariffs, and upgraded safety requirements.
Trump’s visit has reignited debate over the Fed’s ability to operate free from political influence, as economists and analysts caution against growing executive pressure.