Trump, Powell tour Federal Reserve headquarters amid criticism over renovation price tag

President Trump said he won’t fire Federal Reserve Chairman Jerome H. Powell, but said a project manager who was over budget on one of his real estate projects wouldn’t fare the same, as both men donned hard hats and toured the central bank’s over budget headquarters renovations Thursday.

“Generally speaking, what would I do? I’d fire him,” Mr. Trump said when asked how he would handle a construction project manager who was over budget.

But when asked if the issue of the over budget renovations gave him cause to fire Mr. Powell, Mr. Trump said he doesn’t want to get personal, and that he was only visiting the site along the National Mall in Washington for a tour. He said later that he didn’t think firing the Fed chair would be necessary.

“It’s very extensive work, no question about it,” Mr. Trump said of the renovations.

The high-level tour came as Mr. Trump has increased pressure on Mr. Powell to lower interest rates and has spoken publicly about possibly firing the chairman before his term expires in May. 

Mr. Trump and Mr. Powell had a bit of a back-and-forth over the price tag of renovations when the president said the price had gone up even more, from $2.5 billion to $3.1 billion, from its original price tag of $1.8 billion.

Mr. Powell said he hadn’t heard the president’s new figure, and shook his head. Mr. Trump handed Mr. Powell a piece of paper with the figure on it, but the Fed chairman pointed out that the purported higher price included the cost of another building that was completed years ago.

Mr. Powell told the president he doesn’t expect any more price increases, but said the Fed is “ready for them” and there are reserves for that possibility. He said the renovations should be finished in 2027. 

Mr. Trump jokingly said Mr. Powell could lower the interest rates — one of the biggest thorns in the president’s side — when asked what could be done to get him to stop criticizing the renovation price tag.

After the tour, the president said the Fed has “to get it done, they have to get it finished, and very importantly, we have to get interest rates lowered in our country.”

He said the tour was very good, and when asked if he saw any mismanagement at the site, he said, “I see a very luxurious situation taking place.”

The president said he spoke with Mr. Powell about interest rates, calling it a “very productive talk” with no tension involved. He said he had ideas for candidates to replace Mr. Powell, but wouldn’t be forcing him out of the job.

In a Truth Social post ahead of the tour, Mr. Trump said GOP Sens. Tim Scott of South Carolina and Thom Tillis of North Carolina, along with Office of Management and Budget Director Russell Vought and Fannie Mae and Freddie Mac Board Chairman Willian Pulte, were joining him for the tour, among others.

Mr. Pulte, who heads the Federal Housing Finance Agency, and Mr. Vought, have been two of Mr. Powell’s biggest critics.

The White House and OMB have grown increasingly critical of the central bank’s $2.5 billion plan to renovate its headquarters.

The Fed has said the cost increases were due to design changes, increases in the cost of materials, equipment, and labor, and “unforeseen conditions” such as more asbestos than anticipated and toxic contamination in the soil.

Mr. Trump hit Mr. Powell over the rates in another social media post on Wednesday, saying he’s the reason people can’t afford houses.

“Families are being hurt because Interest Rates are too high, and even our Country is having to pay a higher Rate than it should be because of ‘Too Late,’” Mr. Trump wrote. “Our Rate should be three points lower than they are, saving us $1 Trillion per year (as a Country). This stubborn guy at the Fed just doesn’t get it — Never did, and never will. The Board should act, but they don’t have the Courage to do so!”

He slammed Mr. Powell as a “numbskull” earlier this week.

The Fed has defended itself via a Frequently Asked Questions page on its website.

“The Federal Reserve takes seriously the responsibility to be a good steward of public resources. The project will reduce costs over time by allowing the Board to consolidate most of its operations. It involves a complete overhaul and modernization that preserves two historical buildings that have been comprehensively renovated since their construction in the 1930s,” the page said.

Mr. Powell was nominated by Mr. Trump in 2017 and was appointed to another four years by President Biden in 2022.

The Fed is an independent agency and is supposed to be free from political influence and pressure. The president appoints the Fed chairman every four years, but doesn’t have the authority to fire them.