Updated July 25, 2025 at 3:43 PM EDT
President Trump visited the Federal Reserve on Thursday to inspect an ongoing renovation of the central bank's Washington, D.C., buildings — and in an unusual moment, then verbally sparred with Fed Chair Jerome Powell about the final cost of the project.
The Fed's expensive renovation project has become a point of contention as the president seeks to pressure the central bank to lower interest rates more quickly. The renovation's cost has soared from $1.9 billion to $2.5 billion in recent years.
During the visit, Trump and Powell, accompanied by Sen. Tim Scott, the South Carolina Republican chairman of the Senate Banking Committee, stopped to address news cameras.
Trump, waving a document, claimed the costs had now reached $3.1 billion as Powell visibly shook his head in disagreement.
"So we're taking a look, and it looks like it's about 3.1 billion [dollars]," Trump said. "Went up a little bit — or a lot."
Powell pushed back on the president's assertion, responding: "I haven't heard that from anybody at the Fed."
The Fed chair then took the document, looked at it and said the additional costs the president was citing had been for a separate building whose construction was completed five years ago.
Trump then appeared more conciliatory as reporters shouted questions.
"I don't want to be personal. I just would like to see it get finished," Trump said, referring to the renovations. "And in many ways, it's too bad it started, but it did start. And, and it's been under construction for a long time."
Trump also appeared to avoid delving into his recent criticisms of Powell.
"Well, I'd love him to lower interest rates, but other than that, what can I tell you?" Trump said as Powell chuckled.
Trump later seeks to ease tensions
Later, Trump again addressed reporters — this time without Powell — and sought to ease tensions from his earlier appearance.
"I thought we had a good meeting," Trump told reporters. "No, there was no tension. There was no tension."
In the run-up to Thursday's visit to the Fed, Trump had been relentlessly attacking Powell, describing the Fed chair as a "numbskull" and as "too late" to cut interest rates.
In his second appearance before the press on Thursday, Trump again called for lower borrowing costs, although he said he felt "good" about his relationship with Powell.
"I believe that the chairman is going to do the right thing, maybe a little too late, as the expression goes, but I believe he's going to do the right thing," Trump said.
An unusual visit in more ways than one
Trump's visit marks the first time a president has visited the Federal Reserve since 2006, when President George W. Bush attended the swearing-in of Ben Bernanke, a previous chair of the central bank.
That's because the Fed has long protected its independence in setting interest rates, which is critical in retaining the confidence of global investors. Presidents in modern times have mostly respected the Fed's independence and sought to avoid being seen as interfering with its decisions.
The Fed has held interest rates steady this year, in large part over concerns that the president's tariffs could spark an increase in inflation. The latest data showed consumer prices rising 2.7% from a year ago, at a faster clip than the previous month.
That uptick makes it unlikely the Fed will cut rates at its next policy meeting, later this month, despite Trump's pressure.
Trump has threatened to fire Powell
Trump's frustrations boiled over last week when he threatened to fire Powell. Later, he backed down — without fully ruling it out.
The Fed has not responded to Trump's criticism, but Powell has previously made clear he intends to serve out his term as Fed chair, which expires next May. Last year, when asked whether he would resign if Trump requested it, Powell responded with an emphatic "No."
An attempt to fire Powell would likely roil financial markets and lead to a huge legal fight. Legal scholars believe a Fed chair can be fired only "for cause," such as for breaking the law.
The Trump administration's attacks against the Fed renovation project are seen as another way to ramp up pressure on Powell and as potentially a reason to fire him — though legal scholars have said such an excuse is unlikely to pass legal muster.
The Fed chair has previously pushed back, attributing the cost overruns to mitigations for lead and asbestos, as well as to inflation, which has raised the cost of building projects nationwide.
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