• Trump claims Federal Reserve renovation costs rose to $3.1 billion.
• Powell corrects Trump, stating true costs are closer to $2.5 billion.
• The renovation has become a point of contention amid Trump's pressure for lower interest rates.

During a recent visit to the Federal Reserve, President Donald Trump engaged in a tense exchange with Fed Chair Jerome Powell over the ongoing renovation of the central bank's Washington, D.C. headquarters. Trump claimed the project cost had inflated to $3.1 billion, a figure Powell quickly disputed, pointing out that Trump was mistakenly including costs associated with the Martin Building, which was completed five years ago. Powell emphasized, "You're including the Martin renovation – you just added in a third building," correcting Trump's assertion that the renovation was still ongoing, according to Newsweek, NPR, and Los Angeles Times.

The renovation project, which was initially budgeted at $1.9 billion, has faced spiraling costs attributed to various factors, including delayed timelines and increased security measures for the aging facilities. Powell explained that the rising expenses stemmed from inflation and compliance with safety and preservation standards, noting that the current cost estimate stands at approximately $2.5 billion. Trump, however, critiqued Powell's management, saying, "In my career, if I had budget overruns like that, I would have fired someone," adding a humorous note that "if he lowers interest rates, he might get back in my good graces," as reported by South China Morning Post, HuffPost, and TRT Global.

This unusual public clash is set against Trump's longstanding criticism of Powell for not cutting interest rates aggressively enough amid concerns over the economy's health and impacts from ongoing tariffs. As Trump pressed for lower rates to stimulate economic growth, Powell has maintained a steady course, focusing on inflation monitoring and the project's financial realities. He stated, "I haven't heard that from anybody," in response to Trump's inflated figures, reinforcing the Fed's independence and authority over monetary policy decisions, according to India Times and Le Monde.

Despite the public display, there were indications that not all within Trump's administration agree with his sentiment towards Powell. Treasury Secretary Scott Bessent expressed no indication for Powell to resign, asserting, "He’s been a good public servant," amid the growing tensions surrounding the Fed, as noted by Los Angeles Times and HuffPost.