President Donald Trump and Federal Reserve Chairman Jerome Powell sparred in front of the press over the central bank’s construction spending after Powell took Trump on a private tour of the central bank’s headquarters renovations.
It is unusual for presidents to visit the Fed’s headquarters, and the moment was made particularly awkward given Trump’s attacks against Powell over his refusal to lower interest rates. The Trump administration has pointed to the expensive renovations as examples of Powell’s mismanagement of the Fed. The visit to the Fed building on Constitution Avenue was billed as giving administration officials a chance to see the construction firsthand.
Trump, wearing a fuchsia tie, and Powell stood in front of the press wearing white hard hats and immediately began to spar over cost estimates for how over-budget the multiyear project will be.
“We’re taking a look, and it looks like it’s about $3.1 billion, it went up a little bit, or a lot — so the $2.7 [billion] is now $3.1 [billion],” Trump said as Powell appeared confused and shook his head.
“I’m not aware of that,” Powell interjected. “I haven’t heard that from anybody at the Fed.”
Trump then pulled a document with information on the spending out of his suit jacket, and the two argued over the buildings included in the cost calculation.
Powell said he doesn’t expect any more cost overruns but that the Fed is prepared if there are.
At one point, Trump removed his white hard hat, and Powell followed suit.
When asked if Powell could say anything to make Trump back off his criticisms of him, Trump slapped Powell on the back and said, “Well, I would love him to lower interest rates.”
Powell, who has insisted for months that he does not factor Trump’s comments into monetary policymaking decisions, gave a wry smile but otherwise didn’t react.
Trump addressed the press pool after the Fed tour. He railed against the higher interest rates, but struck a less combative tone toward Powell and indicated that he won’t be firing Powell or pushing him to resign.
“I met with the contractors, we toured it with the chairman, and we had a very good tour,” Trump said.
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Trump also indicated that he didn’t think the cost overruns on the building renovation constituted a fireable offense.
“There’s always Monday morning quarterbacks, I don’t want to be that,” Trump said. “I want to help them get it finished. It’s been going around for years, and I want to help them get it finished.”
