Former President Donald Trump made a rare and highly symbolic visit to the Federal Reserve’s Washington headquarters on Thursday, escalating his public pressure campaign against Chair Jerome Powell over the central bank’s $2.5 billion renovation and its reluctance to cut interest rates.
The visit marked the first time Trump has set foot inside the Fed’s Marriner S. Eccles Building since the early 2000s. It comes as the Trump administration intensifies its scrutiny of the central bank’s infrastructure spending and overall direction ahead of a pivotal policy meeting.
Trump toured the Fed’s main complex — still undergoing major reconstruction — wearing a hard hat alongside Powell and top administration officials. The entourage included senior lawmakers and economic advisors, highlighting the political weight of the visit.
During remarks to reporters, Trump called the renovation “pretty disgraceful,” claiming the project’s cost had ballooned beyond $3 billion and questioning its necessity. He warned that if any financial misconduct or fraud were discovered, Powell could face dismissal.
Powell pushed back, explaining that the larger cost figure includes separate facilities and long-term upgrades deemed essential for safety, security, and modern functionality. Despite the friction, both men maintained a publicly civil tone throughout the tour.
The renovation project — aimed at modernizing two of the Fed’s oldest buildings — has become a lightning rod for criticism from fiscal conservatives. The buildings had not undergone major upgrades in decades, and officials argue that critical systems such as electrical wiring, HVAC, and fire suppression were outdated or failing.
Critics, including several senators aligned with Trump, have mocked the project as a “palace makeover,” accusing Fed officials of greenlighting unnecessary luxuries. Fed officials deny such characterizations and have invited oversight reviews, maintaining that no unauthorized or extravagant features have been approved.
Trump’s suggestion that Powell could be fired stirred immediate legal and political debate. Under federal law, the president may only remove the Fed chair “for cause,” such as proven misconduct or dereliction of duty — not policy disagreements or controversial spending.
Still, Trump has signaled an aggressive posture toward the Fed’s leadership, repeatedly expressing frustration over high interest rates, which he claims are stifling economic growth and harming American competitiveness. The Fed has held rates steady in recent months amid mixed economic signals and inflation concerns.
With the next Federal Open Market Committee (FOMC) meeting days away, Trump is pushing for at least a modest rate cut. Powell, however, has so far resisted political pressure, citing uncertainty from global markets, trade tensions, and inflation dynamics.
Analysts are closely watching the Fed’s next move, though markets remained relatively calm following the visit. While some traders are pricing in potential rate cuts later in the year, no major shift is expected this month.
The visit underscores rising tension between the White House and the traditionally independent central bank. Trump’s public criticism of Powell, both over monetary policy and now over real estate spending, is seen by many former Fed officials as a break from long-standing norms.
While Powell continues to enjoy support from within the Federal Reserve System and many in the financial community, his future may depend in part on how the renovation inquiry plays out — and whether Trump is prepared to test the limits of presidential authority over the Fed.
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