Powell Picks A Fight With Trump?

In a stunning moment during a high-profile visit to the Federal Reserve headquarters, President Donald Trump directly challenged Federal Reserve Chair Jerome Powell over what he described as a “skyrocketing” renovation budget that has ballooned to over $3.1 billion—a sharp increase from the originally stated $2.5 billion.

“It looks like it’s up to $3.1 billion. That’s quite a jump,” President Trump said Thursday, standing in front of the Fed’s Washington, D.C. building. Powell, appearing visibly uncomfortable, pushed back, claiming he hadn’t heard that number.

“I’m not aware of that, Mr. President,” Powell said. But Trump wasn’t buying it. He pulled a document from his suit pocket, claiming it supported his figures. Powell reviewed the document and argued it included expenses from another building completed years ago.

“It’s all part of the same deal,” Trump replied. Powell disagreed, saying, “That’s not new.”

Joining Trump were top administration officials and Republican senators, including Sen. Tim Scott (R-SC) and Sen. Thom Tillis (R-NC)—both of whom serve on oversight committees for the Federal Reserve. Their presence signals that the scrutiny over taxpayer-funded renovations is only just beginning.

Renovation Controversy Sparks Firestorm

The $2.5 billion renovation project of the Fed’s headquarters has come under intense White House scrutiny, with critics pointing to possible cost overruns, mismanagement, and regulatory violations.

White House Budget Director Russell Vought and Deputy Chief of Staff James Blair are leading the internal investigation, raising serious questions about how Powell’s team is handling the construction and funding.

President Trump previously hinted the price tag might warrant disciplinary action, even suggesting Powell’s job could be in jeopardy. Although he later backed off the threat, the message was clear.

“As someone who spent his life building projects in the private sector, I can tell you—this would never fly. A project manager would be fired immediately for this kind of cost overrun,” Trump said.

Inspector General Review Underway

In response to growing backlash, Powell has asked the Federal Reserve’s inspector general to conduct a formal review of the renovation process. The central bank has also posted a detailed breakdown on its official website, attempting to explain the rising costs.

Still, many believe that explanation falls short. With the Federal Reserve already under pressure for its handling of interest rates and inflation, the optics of a billion-dollar construction project in Washington couldn’t come at a worse time.

For millions of hardworking Americans watching their savings shrink under high prices and economic uncertainty, this billion-dollar boondoggle is just another example of bloated government spending with zero accountability.