Tension in front of the cameras prevailed between Donald Trump and the president of the US Federal Bank (FED) Jerome Powell, on the occasion of the cost overruns in the renovation of Fed’s central offices in Washington.
Trump severely criticized the cost of renovating Fed’s central offices in Washington, noting that ‘$ 2.7 billion has now become $ 3.1 billion’ accusing the Fed of luxurious waste.
Powell, wearing a helmet as well as the US president, reacted immediately – even shaking his head – denying that the amount was in the real cost.
After Trump gave him a piece of paper, Powell explained that the US president accidentally included a third building that was not part of the renovation project. “It was built five years ago. We completed the Martin building five years ago ‘, he said.
The dispute over the cost of construction comes amid speculations that Trump may attempt to dismiss Powell before his term in office in May 2026. The Republican president has repeatedly expressed his anger over the fact that the federal bank does not reduce interest rates.
However, according to the US law, the country’s president cannot dismiss the Fed chief over disagreement on interest rate policy.
One possible reason for this is a disagreement over the cost of renovating Fed’s old central offices in Washington.
The US government accuses the Central Bank of mismanagement. According to Fed’s latest budget, the renovation project costs $ 2.46 billion. Powell has acknowledged cost overruns, but has rejected allegations of luxury furnishings.
The project does not include private lifts or VIP dining rooms, and new marbles unless any of the initially damaged, Powell said.
In a letter to Trump’s Budget Director, Russell Vut, Powell recently wrote: “We have paid great care to ensure careful monitoring of the renovation project after being first approved by the Board of Directors in 2017.”
During his visit to Fed’s offices, Trump said he did not intend to dismiss Powell, as he has repeatedly implied that he would do.
“Doing this would be a big move and I just don’t think it’s necessary,” Trump told reporters after the visit was completed. “And I think it will do the right thing.”
A little earlier, the US president said he had a productive conversation with Powell on interest rates.