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In a rare presidential visit to the Federal Reserve on Thursday, President Donald Trump publicly criticized the cost of the central bank’s ongoing renovations, calling the estimated $3.1 billion price tag “exorbitant” while donning a hard hat amid ongoing construction.
The event highlighted Trump’s continued pressure on Fed Chair Jerome Powell but ended with the president softening his tone on the possibility of firing the central bank chief.
Powell, standing beside Trump during the tour, shook his head when the president claimed the cost had ballooned. “I haven’t heard that,” Powell said. The Fed chair later clarified that Trump had included a separate, five-year-old project in his estimate.
The president’s appearance came just days after he reportedly told Republican lawmakers he was considering firing Powell—a move that White House officials initially downplayed but did not rule out. However, on Thursday, Trump appeared to pull back from the brink. “I just don’t think it’s necessary” to fire him, he said. “I don’t want to put that in this category.”
Trump appointed Powell during his first term but has grown increasingly frustrated with the Fed’s refusal to cut interest rates. The president favors rate reductions to stimulate the economy ahead of the election, while Powell has insisted that Trump’s own tariffs are pushing inflation higher, making rate cuts risky.
Asked if Powell could do anything to reduce presidential criticism, Trump replied, “Lower rates,” before slapping Powell on the back in what appeared to be a conciliatory gesture. The president added that the two had a “productive talk” about interest rates and that Powell would share his perspective at the Fed’s next news conference following its policy decision in six days. Rates are expected to remain unchanged.
The $2.5 billion renovation of the Fed’s headquarters became a political flashpoint after Trump’s budget director, Russell Vought, promised an investigation into what Republicans have characterized as a “lavish” and “ostentatious” project. Critics claim it includes extravagant features such as VIP dining rooms, luxury elevators, and extensive marble work.
Powell, however, has repeatedly denied those claims. “There’s no VIP dining room. There’s no new marble,” he told the Senate Banking Committee last month. The Fed launched an FAQ page to address the concerns, citing rising costs due to raw materials, asbestos abatement, and changes recommended by review agencies—many of which included Trump appointees.
Despite Trump’s public jabs, his visit ended on a notably less confrontational note. “No tension,” Trump said when asked about his relationship with Powell. “He’s showing us around, showing us the work. I don’t want to be personal.”
Still, Trump later posted on Truth Social that the project “would have been much better if it were never started” but added that he would be “watching and, hopefully, adding some expertise.”
This marked only the fourth time a sitting president has visited the Fed’s main building, with the last being George W. Bush in 2006. As the administration weighs further action, the renovation remains a symbolic battleground for broader fights over inflation, accountability, and presidential power.
