‘I would fire…’: Trump clashes with Jerome Powell over Fed’s $3.1 billion renovation budget
Both Trump stands shoulder to shoulder with Powell while wearing construction helmets, the FED renewal costs rose from $ 2.7 billion to $ 3.1 billion, and the FED chief said that he said, im I am not aware of it ”.
Tr Trump replied, çıktı new output ve and Powell questioned where the president’s number came from because he did not come from the central bank.
The Fed chair corrected him in real time. “You just added to a third building. It was built five years ago.”
Trump’s third building Martin building finished in 2021 and reopened. It is not part of the current renovation project.
He apparently asked Trump what he would do to a project manager who encountered the kind of cost -effectives the FED faced. “If we talk in general, what would I do? I fired him,” the President said. In this short but sharp stock market, tension between the two men emerged for months and pointed to a change in Trump’s campaign to print Powell on interest rates.
Powell is standing in place
The Fed Chair defended the necessity of the project. In a letter to Vought, Powell, both buildings, “significant structural repairs and other updates and removal of asbestos and lead contamination, electricity, sanitary installations, heating, ventilation and air conditioner, as well as antique systems such as fire detection and fogging systems completely changed.
Powell also rejected the allegations that the Fed has removed planning procedures. Vought accused Powell of making unapproved changes without consulting the National Capital Planning Commission. Powell said the Fed did not have to do so legally.
“The changes in the Fed’s plans aim to simplify construction and to reduce the likelihood of more delays and cost increase, P said Powell. “The Board does not see any of these changes as requiring more examination.”
Since then, he ordered the Fed’s general inspector to make a second review of renovation.
Powell vs Trump: Why are they fighting?
The renewal of the Historical Center, including the ECCLES and 1951 Constitutional Street buildings, was approved in 2017. Initially, it is expected to cost $ 1.9 billion, and now it is expected to hit 2.5 billion. Trump claimed to have reached 3.1 billion, but the FED includes completed projects, not part of the current work.
FED personnel, increasing costs of security upgrades, inflation and material tariffs, he said. Tariffs imposed by Trump in 2018 and raised again this year increased steel prices by 60 percent. According to government data, construction costs generally increased by 50 percent.
Before Trump’s visit, reporters were shown to reporters with explosion -resistant windows, cutting walls and underground mechanical rooms. The FED personnel pointed out the status of the building as a historical site that restricts the design changes and increases costs. Underground additions were selected according to the roof opening to maintain the appearance of the building.
Republicans increase the heat
Congress Republicans seized costs. They called the site “Versailles Palace ve and accused Powell of supervising a unnecessary luxury project.
In response to the questions about special features, Powell said to Congress, “No VIP dining room, no new marble… No special elevators, there are only old elevators.” He said.
It has been confirmed that a elevator, which was previously marked by critics, will be accessible by all fed employees by the personnel. Otherwise, a alleged planning certificate has been changed.
An unusual presidential step
Trump’s visit to the FED was shared only on the social media platform. Considering the independent status of the bank, the sitting presidents rarely enter the Fed’s headquarters. In 2006, George W. Bush was the last.
In addition to Trump, Senators Tim Scott and Thom Tillis, White House Budget Director Russell Vought, FHFA Director Bill Pulte and other senior officials. Their presence pointed out that Trump gave this visit not only as a photographic opportunity, but also as a sharp expression.
Im I would love to reduce her interest rates, Tr Trump said during the tour. And then, in a separate statement to the press, “We have to reduce interest rates. People can almost buy a house.”
Policy meets policy
Trump has been attacked Powell for reducing interest rates for months. He said to him, “It’s too late,” and claimed that Fed’s monetary policy was down the economy. Even a 3 -point deduction swam.
“I don’t want to put this in this category, Tr Trump said,” I don’t want to put this in this category, “Trump said. “To do this is a big move and I don’t think it is necessary. I just want to see that there is something, very simple: interest rates are falling.”
Trump later, “costs are important, but on the positive side, our country goes very well and can meet almost everything – even the cost of this building!”
In a separate comment from the Oval Office, Trump clarified his intentions. “I think he did a bad job, but it will still be very soon,” he said. “He’il go out in eight months.”
Despite the threats, Trump moved away from expelling Powell before his ending in May 2026. However, the management continues to pressure.
The renewal is now expected to finish until the end of 2027, and the staff is moving towards the beginning of 2028. Approximately 3,000 employees are expected to return to the site.
Whether interest rates remain to see. For now, the Central Bank seems to keep the rates constant, even if it continues to use every vehicle, including a construction site to do the Trump case.
(With AP inputs)
