Powell Refutes Trump’s $3.1 Billion Renovation Claim at Federal Reserve

In a rare public clash, Federal Reserve Chair Jerome Powell has directly countered former President Donald Trump’s recent assertion about the cost of renovations at the Federal Reserve headquarters. Trump claimed that the renovation project had accumulated expenses exceeding $3.1 billion (approximately 4.2 trillion Korean won). Powell, however, confidently refuted this figure, stating, “That’s not true.”

The dispute became public during a joint appearance at the Federal Reserve’s headquarters in Washington, D.C., on the 24th, where both men were photographed wearing hard hats during a media briefing. Powell clarified that Trump’s cited number was misleading. “I’ve never heard that figure from anyone,” Powell stated firmly, adding that the $3.1 billion figure likely included costs associated with an unrelated government facility completed five years ago.

Trump, in his response, left the door open for further clarification, stating, “We’ll look into it. There’s still a long way to go.”

Growing Strains Over Interest Rates

This public disagreement comes amidst intensifying tensions between Trump and Powell, particularly over monetary policy. Trump has been vocal in his criticism of the Federal Reserve, repeatedly pressuring the central bank to implement significant interest rate cuts. The incident highlighted an unusual dynamic, as Powell corrected Trump—who had originally nominated him for the role—as part of their ongoing friction.

During their visit to the Federal Reserve’s facilities, Trump once again called for lower interest rates, a point he has adamantly championed. When questioned by reporters about Trump’s criticism, Powell remained measured. However, Trump interjected during the moment, reiterating his stance: “It would be great if they lowered rates.”

Renovation Controversy Sparks Resignation Demands

The dispute over the renovation costs has stirred broader controversy, with renewed calls for Jerome Powell’s resignation. Earlier on the same day, Federal Housing Finance Agency (FHFA) Director Billy Pault openly criticized Powell on the social media platform X (formerly Twitter), writing, “Jerome Powell should step down.”

While Trump hinted at potential dissatisfaction with Powell, his remarks were more restrained. “I don’t see the need for it right now. I believe Powell will make the right decisions,” Trump remarked when asked about Powell’s future in his current role. Regarding whether the ongoing renovation debate might serve as grounds for Powell’s removal, Trump downplayed the suggestion, stating, “I wouldn’t go that far. I just want to see the project finished.”

Continued Advocacy for Rate Cuts

Despite the renovation quarrel, Trump intensified his push for lower interest rates, asserting, “We want to see rates coming down.” During the visit to the Fed’s headquarters, he criticized what he described as “luxurious” expenditures, further spotlighting his concerns about fiscal responsibility.

This latest exchange reflects an escalating rift between Trump and Powell as they engage in sparring over monetary policy and federal spending. With Trump increasing his focus on these issues ahead of potential political ambitions, the tension surrounding their public and economic disagreements appears far from resolved. Whether this conflict will deepen further is an open question.