Trump-Powell Feud Flares Publicly During Fed Tour, Then Quickly Cools

Tensions between President Donald Trump and Federal Reserve Chair Jerome Powell burst into public view Thursday during a tour of the Fed’s renovation project — before quickly de-escalating.

The confrontation began when Trump, addressing reporters, claimed the renovation cost had jumped from $2.7 billion to $3.1 billion. Powell, visibly puzzled, corrected the president in real time, pointing out that Trump had mistakenly included a separate building — the Martin building — completed in 2021.

Trump insisted, “It’s a building that’s being built,” prompting Powell to clarify, “It was built five years ago.”

The awkward exchange marked a rare public rebuke by Powell, who has long been the subject of Trump’s criticism over interest rate policy. Trump even joked, “I’d fire him!” when asked about the alleged cost overrun — a jab at Powell’s oversight of the renovation.

Despite the public clash, Trump appeared to walk back his frustration later, saying, “I don’t want to put this in that category,” when asked if Powell’s job was in jeopardy. He added there was “no tension” between them and expressed confidence in Powell, despite hinting again at plans to replace him when his term ends in 2026.

The encounter came amid ongoing pressure from Trump for Powell to cut interest rates. Powell and the Fed have kept rates steady, citing concerns that Trump’s trade policies could reignite inflation.

The two men will be watching closely as the Federal Reserve prepares for its next policy meeting next week — one that could further define their strained relationship.

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