Fri, 25 Jul 2025

Fri, 25 Jul 2025 Trump bickers with Powell over Fed renovation costs

Tensions between the president and the Fed Chair were on full display during Trump's visit.

* US President Donald Trump has clashed with Federal Reserve Chairman Jerome Powell over the cost of building renovations at the Fed's headquarters.
* The dispute arose as Trump has been escalating his pressure on Powell, who he claims is moving too slowly to cut interest rates.
* Trump said the administration was "taking a look" at the $2.7 billion renovation project and claimed it was costing $3.1 billion, while Powell disputed this figure.
* The Fed's budget for 2025 shows that costs have risen from $1.88 billion in 2019 to $2.45 billion, but this increase has been met by reducing funding for other projects.
* Trump said a project manager who was over budget would typically be fired, and hinted that he might fire Powell if interest rates are not cut soon enough.
* Legal experts have said that cost overruns on the construction project would not typically meet the bar for removing a Fed governor "for cause".
* The dispute comes ahead of the Fed's meeting next week, where policymakers are expected to leave interest rates unchanged.
* Trump has repeatedly floated the possibility of firing Powell, which analysts say would rock financial markets and spark a legal battle.
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