• President Donald Trump publicly criticized Federal Reserve Chair Jerome Powell over rising renovation costs at the Fed's headquarters.
• During a tour, Trump claimed renovation costs had surged to $3.1 billion, a figure Powell disputed, stating it was $2.5 billion.
• Trump reiterated his demands for lower interest rates, suggesting a cut of at least 3 percentage points.
• The visit marked an escalation in Trump's pressure on the independent Fed, occurring days before a key policy meeting.
• Despite tensions, Trump later expressed he would not fire Powell, remarking they had a “very good meeting” on interest rates.

U.S. President Donald Trump visited the Federal Reserve's headquarters in Washington on Thursday, where he clashed with Fed Chair Jerome Powell over the costs of ongoing renovations. Trump criticized the project cost, claiming it had ballooned to $3.1 billion, while Powell maintained the official figure is $2.5 billion. Powell pointed out that Trump was mistakenly including costs from a separate renovation of the William McChesney Martin Jr. Building, which was completed in 2021. "You just added in a third building," Powell told Trump during the tour, which was intended to display the ongoing construction and security upgrades for the nearly 100-year-old facilities, including the removal of hazardous materials and installation of blast-resistant windows, according to the Fed's statements. This visit highlighted escalating tensions as the White House criticizes Powell's management and the rising expenses related to the renovation, which also includes modern safety standards, further reflecting the challenges faced by the central bank in maintaining its independence amidst heightened political scrutiny, according to Reuters, Reuters, CBS News, BBC, Charlotte Observer, Channel News Asia, and India Times.

Throughout the visit, Trump reiterated his demand that the Fed cut interest rates, specifically aiming for reductions of up to 3 percentage points to help stimulate economic growth. Powell, however, has maintained the current interest rate between 4.25% and 4.50% as the bank monitors inflation, which was recently reported at 2.7%. Despite their ongoing conflict, Trump later indicated he would not pursue firing Powell, citing that “to do so is a big move and I just don't think it's necessary." The visit took place just days before the Fed’s policymakers meet for scheduled discussions on interest rates. Analysts emphasize the critical need for the Fed to preserve its independence in setting monetary policy in light of Trump's frequent critiques and demands, as reported by Reuters, Al Jazeera, HuffPost, Newsweek, and Los Angeles Times.