US President Donald Trump and Federal Reserve Chairman Jerome Powell have clashed over the cost of ongoing renovations at the central bank's Washington, DC headquarters.
"We're taking a look, and it looks like it's about $3.1 billion. It went up a little bit or a lot. So the $2.7 (billion) is now $3.1 (billion)," Trump said on Thursday as Powell visibly shook his head in apparent rejection of the president's claim.
"I'm not aware of that," retorted Powell, suggesting that the total renovation cost Trump marched out before reporters includes the renovation of the Federal Reserve's William McChesney Martin Jr. Building, which was completed in 2021, in addition to the two buildings that are currently in the midst of construction.
"You just added in a third building. That's what that is. That's a third building," said Powell.
"Well, I know, but it's a building being built," Trump said.
"No. It was built five years ago. We finished Martin five years ago," the Fed chairman retorted.
Power struggle
Currently, the Fed's Marriner S. Eccles and 1951 Constitution Avenue buildings are under renovation. Both were built in the 1930s, and while Powell has acknowledged cost overruns that have been incurred in the course of renovating the nearly 100-year-old facilities, he has maintained they were in dire need of updating, prompting the Board to approve the overhaul in 2017.
"Both buildings were in need of significant structural repairs and other updates to make the buildings safe, healthy, and effective places to work, including the removal of asbestos and lead contamination, complete replacement of antiquated systems such as electrical, plumbing, heating, ventilation, as well as fire detection and suppression systems," Powell wrote in a letter to Office of Management and Budget Director Russell Vought last week.
Construction on the Eccles and 1951 Constitution Avenue buildings is expected to be completed in 2027.
Trump and his political allies have sought to use the associated cost overruns as barbs against Powell as the chairman has so far refused to comport to the president's demands to lower interest rates over fears that doing so will exacerbate inflation at a time when the economic toll of Trump's tariff war remains unknown.
Powell has kept the key short-term rate at 4.3% after he instituted three cuts in 2024.
