In a rare and dramatic visit to the Federal Reserve’s headquarters on July 24, President Donald Trump walked side by side with Fed Chair Jerome Powell through the heart of an ongoing $2.5 billion renovation, turning what was meant to be a behind-the-scenes tour into a full-blown political showdown. Accompanied by Republican senators, administration officials, and a team of hard-hatted aides, Trump used the occasion to reignite his attacks on Powell over interest rate policy and federal spending, seizing on the renovation’s ballooning cost as both a fiscal grievance and a symbol of what he called Powell’s “bad job.” The televised clash quickly evolved into a made-for-camera confrontation, with Trump pulling out paperwork and Powell pushing back on the math, as both men stood firm before a stunned press corps.

Presidents rarely visit the Fed’s headquarters, let alone challenge the central bank chief mid-tour. But Trump, flanked by Senators Tim Scott and Thom Tillis, OMB Director Russ Vought, and other Trump appointees, wasn’t holding back.

When asked by a reporter what he’d do with a project manager who went over budget, Trump fired:
“Generally speaking, I’d fire him!” — drawing laughs from some in the crowd, but not from Powell.

“Too Late” No More? Trump Teases Powell’s Replacement

Trump later hinted he had a shortlist of successors in mind.

“Have name in mind to replace Fed Chair Powell — maybe three,” Trump told reporters.
But for now, Trump said, “There’s no pressure on Powell.”

Despite that claim, his actions suggested otherwise. The event — originally planned as a construction inspection — quickly became a public spectacle aimed at embarrassing the Fed chief.

“Let’s just get it finished and, even more importantly, LOWER INTEREST RATES!” Trump posted on Truth Social after the visit.

Powell Fact-Checks Trump — On Camera

In a striking moment rarely seen in Trump’s presidency, Powell fact-checked the President on live camera — refusing to let him inflate the renovation figures.

Trump: “So we’re taking a look, and it looks like it’s about 3.1 billion.”
Powell (shaking head): “No.”
Trump (insistent): “The 2.7 is now 3.1.”
Powell (recoiling): “You just added in a third building.”
Trump: “It’s a building that’s being built.”
Powell (deadpan): “No, it was built five years ago.”
Trump (closing): “It’s part of the overall work.”

That third building, Powell explained, was finished in 2021 and wasn’t part of the current $2.5 billion renovation budget for the historic Marriner S. Eccles and 1951 Constitution Avenue buildings. The inclusion of that old cost was “misleading,” according to Fed officials.

The Fed’s Palace of Controversy

Originally projected at $1.9 billion, the Fed’s renovation costs ballooned due to inflation, supply chain delays, asbestos removal, and national security upgrades like blast-resistant windows and shear walls. The current price tag sits at around $2.5 billion, though Trump repeatedly pushed the $3.1 billion figure — a talking point now echoed by his political allies.

GOP critics have dubbed the Fed’s HQ remodel the “Palace of Versailles.”

Powell, however, defended the scope and necessity of the project before Congress:

“There’s no VIP dining room, there’s no new marble … there are no special elevators,” he said.
“Just old elevators that have been there.”

Powell also emphasized the complexity of renovating historic buildings while maintaining government oversight, noting the Fed’s inspector general is reviewing the project again.

A Political Pressure Campaign in Hard Hats

The Thursday tour wasn’t just about walls and wiring — it was a full-blown political move. Trump used the moment to reignite pressure on Powell for rate cuts, which the Fed has resisted amid persistent inflation and trade war uncertainty.

Standing next to Powell, Trump told reporters:
“I just want him to lower the rates.”

Powell remained mostly stone-faced. When asked if Powell could say anything to get him to stop the attacks, Trump delivered the punchline:

“Well, I’d love him to lower interest rates.”

https://www.youtube.com/embed/7RgYm4s0Fog?si=Q5_WqO1W3rhuXCxi

Related: Fed Chair Jerome Powell Hit With Criminal Referral by House GOP Trump

What’s Really at Stake

Powell’s term ends in May 2026, and while Trump hasn’t moved to fire him — likely due to legal risk and market backlash — Thursday’s spectacle confirmed the pressure is mounting.

“I think he’s done a bad job, but he’s going to be out pretty soon anyway,” Trump told reporters earlier this week.

Inside the Fed, staff say the building upgrade is on track to finish by Fall 2027, with a full workforce return by early 2028. But the political heat won’t cool anytime soon.

With Trump openly teasing replacements and turning a construction project into a campaign stage, the central bank’s independence is once again at the center of a very public power struggle.