President Donald Trump has openly criticized Federal Reserve Chair Jerome Powell over what he deems gross mismanagement of the Federal Reserve building's renovation project. Trump took to his platform, Truth Social, to voice his displeasure, highlighting an alarming increase in renovation costs from an initial $50 million to a staggering $3 billion. He accuses Powell of repeated delays and incompetence, labeling him "Jerome 'Too Late' Powell."
The renovation, originally projected to be a modest financial undertaking, has evolved into a costly and politically contentious issue. The project's expenses have surged to approximately $2.5 billion, prompting bipartisan concern and scrutiny. Trump's pointed critique extends beyond the renovation to the Federal Reserve's economic policies. He has been vocal about his desire for Powell to lower interest rates, which he believes are damaging the economy—a position the Fed Chair has resisted, citing economic uncertainty and the lingering effects of tariffs from Trump's tenure.
Trump's public rebuke represents an escalation in his ongoing dispute with Powell. The president has expressed frustration not only with construction delays but also with the Fed's refusal to adjust interest rates, which he argues is harming economic growth. As borrowing costs rise due to high interest rates, the pressure mounts on the Federal Reserve to reconsider its monetary policy.
While Trump has stopped short of initiating immediate action to remove Powell from his position, he has called for Powell's resignation and signaled intentions to appoint a successor who would pursue aggressive interest rate reductions when Powell's term concludes in May 2026.
Amid the fiery exchange, concerns have been raised about whether the Federal Reserve has adhered to all regulatory requirements during the renovation. Features such as underground parking and basements beneath historic buildings near the National Mall have been singled out as examples of unnecessary and extravagant spending. Congressional Republicans have accused Powell of misleading Senate committees by downplaying the extent of these luxury features, though Powell has denied such accusations.
This unfolding conflict has garnered attention from political and economic commentators alike. It underscores the broader debates over fiscal responsibility, the Federal Reserve's role in managing the economy, and how to navigate inflation and federal spending during periods of recovery and uncertainty.
The threat of legal action looms as Trump continues to chastise Powell's handling of the renovation project. However, the specifics of any potential lawsuit remain unclear at this time. As the inflation report indicates a 2.7 percent annual rise in consumer prices, the tension between Trump and Powell captures the nation's deep division over economic policy and the direction of federal infrastructure projects.
