Federal Reserve Chair Jerome Powell called President Donald Trump a liar to his face on Thursday during a public appearance at the Fed’s Washington headquarters, after Trump claimed the cost of renovations had blown past $3.1 billion.
Standing side by side in white hard hats, Powell told reporters, “That’s not true. I haven’t heard that from anybody,” rejecting the figure and correcting Trump by saying the number included a separate federal building that “was built five years ago.” Trump then responded, “So we’re going to take a look. We’re going to see what’s happening, and it’s got a long way.”
The back-and-forth happened in front of the press during Trump’s guided tour of the central bank’s historic buildings, where he’s been intensifying pressure on Powell to lower interest rates or leave his position.
The confrontation marked a rare moment: a sitting U.S. president accused of exaggerating in real time by the Federal Reserve chair he appointed in 2017. This was the latest escalation in Trump’s ongoing campaign to push Powell into cutting rates before the end of the year, even as Powell continues to keep them steady.
Powell stands firm against Trump’s public bashing
When a journalist asked if Powell could say anything that would make Trump ease off his attacks, the president said, “Well, I’d love him to lower interest rates.”
Billy Pulte, who also heads the Federal Housing Finance Agency, has been among Powell’s most vocal critics inside Trump’s administration. Just hours before the event, Pulte posted on X, “Jerome Powell must resign.” That message came as Trump once again floated the idea of replacing Powell, even though it’s not entirely clear he can do so. A recent ruling from the U.S. Supreme Court protected the Fed’s independence, and legal experts say firing a central bank chief isn’t as easy as firing a Cabinet secretary.
“To do that is a big move and I just don’t think it’s necessary, and I believe he’s going to do the right thing,” Trump told reporters when asked if Powell’s handling of the renovation was grounds for removal. At another point, he was asked if the renovation issues amounted to a “fireable offense.” He responded, “Look, I would love to see it completed. I don’t want to put that in this category.”
Still, Trump wasn’t backing down on rate cuts. “We want to see interest rates come down,” he said again while touring the site. When asked if he had noticed any mismanagement while walking the buildings, Trump described the situation as “luxurious.”
Bessent raises alarms over Fed’s influence
While Trump clashed with Powell in person, Treasury Secretary Scott Bessent appeared on Fox Business to voice concern over the Fed’s spending. He admitted, “I don’t really understand what’s going on” with the renovation costs, but repeated that the central bank needed an “internal review.”
Scott argued that its broader operations were threatening its independence and said the institution had become “a new kind of central planning.” He called it “an unaccountable agency,” echoing Trump’s larger talking points.
Powell hasn’t lowered rates once this year. Trump argues that doing so would save the U.S. “hundreds of billions” in interest payments, especially as national debt interest hit $1.1 trillion in 2024.
But Powell has stood his ground, citing broader economic conditions that justify keeping the benchmark rate where it is. Trump, meanwhile, keeps ramping up the heat, using every opportunity, including a construction tour, to drive the message home.
Later on, after Trump went back home, he posted on Truth Social that “It was a Great Honor to tour the Renovation (and some new Construction!) of the Federal Reserve Building with Chairman Jerome Powell, Senator Tim Scott, and others. It’s got a long way to go, would have been much better if it were never started, but it is what it is and, hopefully, it will be finished ASAP. The cost overruns are substantial but, on the positive side, our Country is doing very well and can afford just about anything — Even the cost of this building!”
