Powell Rebuts Trump’s $3.1 Billion Claim on Fed Renovation Tour

President Donald Trump and Federal Reserve Chair Jerome Powell publicly clashed over the spiralling cost of the central bank’s headquarters renovation during a hard-hat tour of the construction site in Washington on 24 July. Trump asserted that the project had ballooned to $3.1 billion, a figure Powell immediately disputed, noting it mistakenly combined spending on a separate building completed five years earlier. Fed officials say the overhaul of the 1937-era Marriner S. Eccles Building and an adjacent property is now budgeted at roughly $2.5 billion, up from an original $1.9 billion as security upgrades such as blast-resistant windows pushed expenses higher. Trump called the works “luxurious” and questioned why the price had risen, but Powell stood by the revised estimate and said the project remains under internal scrutiny. Asked how he would handle a private-sector manager who ran over budget, Trump replied, “I’d fire him,” yet later told reporters he is unlikely to seek Powell’s removal, describing such a step as “a big move.” The president has repeatedly criticised the Fed for keeping its benchmark rate at 4.25%–4.50%, urging cuts despite officials’ concerns that his 145% tariff on Chinese goods could stoke inflation. Treasury Secretary Scott Bessent has ordered an external audit of the renovation, adding to political pressure ahead of the Fed’s next policy meeting on 29-30 July. Powell, whose term as chair runs until May 2026, has requested the central bank’s inspector general also review the project, signalling confidence that final costs will align with the current projection.