Today's News: Trump Visits Federal Reserve Renovation amid Controversy over Costs

This visit was part of his campaign to pressure Fed Chair Jerome Powell to lower interest rates... and perhaps to distract from other political controversies, such as the Epstein files.

Terrence Dorsey

Jul 24, 2025

Photo: Kent Nishimura/Reuters

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Date: July 24, 2025
Topic: President Trump’s Visit to the Federal Reserve and the Controversy over Renovation Costs and Interest Rates
Summary: President Donald Trump visited the Federal Reserve headquarters on July 24, 2025, to highlight alleged mismanagement and cost overruns of its $2.5 billion renovation project. This visit was part of his ongoing campaign to pressure Fed Chair Jerome Powell to lower interest rates, despite the Fed’s commitment to independence. During the tour, Trump and Powell publicly debated the project’s actual cost, with Powell correcting Trump’s inflated figures. While Trump expressed a desire for rate cuts, he indicated he would not fire Powell. The Federal Reserve, in turn, has attempted to counter the administration’s criticisms by providing detailed explanations for the renovation costs, citing factors like security upgrades, tariffs, inflation, and unforeseen environmental issues.

Sources

Key Points

President Trump conducted a rare visit to the Federal Reserve headquarters, accompanied by top White House officials and Republican allies, to inspect the ongoing $2.5 billion renovation project.
The primary stated purpose of Trump’s visit was to find evidence to support allegations of mismanagement and cost overruns of the renovation, which he claims has ballooned to an exorbitant sum.
The renovation project, which began in 2022 and is expected to be completed by 2027 or 2028, is acknowledged to be approximately $700 million over its initial budget.
The renovation costs are attributed by Fed staff to factors such as security upgrades (blast-resistant windows, seismic protection), tariffs, inflation, and unforeseen issues like asbestos removal, soil contamination, and a high water table.
Trump’s underlying motivation for scrutinizing the renovation and attacking Jerome Powell is his persistent demand for the Fed to lower interest rates, which the central bank has held steady this year.
The Federal Reserve maintains its independence from the White House, both in its day-to-day management and monetary policy decisions.
Firing a Fed Chair requires “cause” (gross misconduct or legal violation), not simply policy disagreements, a protection bolstered by a recent Supreme Court ruling.
Despite his rhetoric, Trump publicly signaled during the visit that he was not prepared to fire Powell, although he has previously wavered on this stance.
The visit is widely seen by analysts as political theater, serving to amplify pressure on Powell and potentially divert attention from other controversies facing the Trump administration.

Unique Highlights

The New York Times details specific amenities, such as seating on a green roof and fountains, that were cut from original renovation plans to avoid appearing excessive. It also explains that the contract with builders is not a “firm fixed price” but is structured with a fee and overhead rate, with different parts competitively bid, and that 20 of 80 such packages are still to be bid on. The article notes that Fed staff humorously labeled a plywood wall “Oval Office” before covering it with spray paint to avoid angering Trump.
CNN highlights the Fed’s unusual position in a “high-stakes public relations battle” with the White House, quoting crisis management experts on the Fed’s “longstanding playbook” of laying groundwork with media. It also mentions that the 3,000-person DC-based workforce is expected to move into the renovated buildings through March 2028.
NBC News specifically mentions Trump handing Powell a piece of paper during the tour to support his $3.1 billion cost claim, and Powell correcting him in real-time. It also notes the rarity of a presidential visit to the Fed’s main building, listing only three previous instances since 1937.
Fox Business uniquely reports that Rep. Anna Paulina Luna (R-Fla.) referred Powell to the Department of Justice for criminal charges, accusing him of two instances of perjury related to the renovations. It also states that trade outlet Mortgage Professional reported Powell denied these accusations and initiated a formal watchdog probe into the costs.
The Washington Post notes that Trump asked Powell to stand closer to him “in full view of the cameras” during their public debate over costs. It highlights the inconsistency of Trump’s outrage over Fed renovation costs compared to his own administration’s border wall spending. The article also points out that many of Powell’s congressional Republican defenders from Trump’s first term have since retired.
The Wall Street Journal describes the visit as “political theater” aimed at tarnishing Powell’s image and deflecting from other controversies, such as the Jeffrey Epstein case, according to Brian Gardner, a Washington policy strategist. It quotes former Sen. Pat Toomey expressing concern that undermining confidence in the Fed’s credibility could weaken the dollar and push up long-term interest rates.

Contrasting Details

Renovation Cost Figure: President Trump repeatedly cited a cost of “$3.1 billion” for the renovation project during the tour. However, Jerome Powell and Federal Reserve staff consistently corrected this, stating the project’s cost is $2.5 billion, and Trump’s higher figure erroneously included a separate building (the Martin Building) that was renovated five years prior. (The New York Times, NBC News, The Washington Post, The Wall Street Journal)
Intent to Fire Powell: Trump publicly stated during the visit that firing Powell was “not necessary” and “highly unlikely,” and that he believed Powell would “do the right thing” by lowering rates. However, earlier reports indicated Trump had floated the idea to Republicans and even showed a draft firing letter. His past comments included that the renovation costs “sort of is” grounds for removal or “unless he has to leave for fraud.” Treasury Secretary Scott Bessent also downplayed the need to fire him, stating Powell’s term ends in May 2026, while Commerce Secretary Howard Lutnick overtly stated Powell “has got to go.” (The New York Times, NBC News, Fox Business, The Washington Post, The Wall Street Journal)
Existence of “Lavish” Amenities: White House officials and Republican allies, including Rep. Anna Paulina Luna, have criticized the renovation for supposedly including “lavish” features like private elevators, VIP dining rooms, new marble, and rooftop terraces. Jerome Powell and Fed staff have repeatedly denied these claims, stating there are no VIP dining rooms or special elevators, and new marble is only used for repairs or to match existing architecture as requested by review agencies. The Fed’s website also features information to counter these specific allegations. (The New York Times, NBC News, Fox Business)
Underlying Motivation for Trump’s Attack: While Trump frames his criticism as concern over fiscal mismanagement and taxpayer money, several articles suggest the renovation issue is a “sideshow” or “political theater” designed primarily to pressure Powell to lower interest rates and/or to distract from other political controversies, such as the Jeffrey Epstein case. (The New York Times, CNN, The Washington Post, The Wall Street Journal)

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