Criticizing a $3.1B renovation spending by the Federal Reserve as unnecessary and wasteful government spending, Trump voices his dissent.
Federal Reserve Renovation Cost Estimate Sparks Debate Between Trump and Powell
A heated exchange between U.S. President Donald Trump and Federal Reserve Chairman Jerome Powell took place during a tour of the Federal Reserve Building in Washington D.C., with the cost of the ongoing renovation project at the heart of the disagreement.
The initial estimated cost of the renovation project was around $1.9 billion in 2021. However, by mid-2025, the cost had ballooned to approximately $2.5 billion. President Trump criticised the project for being excessively expensive, citing an estimated cost of $3.1 billion. However, Fed Chair Jerome Powell clarified that this figure included a previously completed project and was not the current renovation's actual cost.
The renovation involves the Marriner S. Eccles Building and the adjacent Federal Reserve East Building, both of which had never been fully renovated since their construction in the 1930s. The project includes removing hazardous materials like asbestos and lead, upgrading electrical, plumbing, HVAC, and fire safety systems, and bringing the buildings up to modern codes for accessibility, security, and safety.
The Federal Reserve's renovations are self-financed, not funded by taxpayer dollars, with completion expected in fall 2027 and staff moving in by March 2028.
President Trump expressed disapproval of the estimated $3.1 billion cost for the Federal Reserve renovation, suggesting it could be done for $50 to $100 million. The two leaders had a public on-camera clash during the tour, disagreeing over the estimated cost of the renovation.
In a subsequent press conference, Trump announced a press conference on crime and "beautification" in the White House's Press Briefing Room, scheduled for Monday morning. Trump later insisted there was no tension with Powell after their meeting, despite the awkward on-camera clash over the renovation cost.
The FOMC isn't scheduled to meet again until Sept. 17-18, leaving an unusual emergency meeting as the only potential avenue for policymakers to cut rates ahead of time. Trump has called on Powell to cut interest rates to boost the economy, which Powell has refused to do.
Recently, Trump urged the Federal Reserve's Board of Governors to take control from Powell if he resists immediate interest rate cuts. The disagreement between Trump and Powell over the Federal Reserve's renovation cost and interest rate policy continues to unfold.
| Cost Aspect | Amount | Notes | |---------------------------|------------------|------------------------------------------------| | Initial estimated cost | ~$1.9 billion | Estimate in 2021 | | Later revised estimated cost | ~$2.5 billion | By mid-2025 | | Trump's cited figure | $3.1 billion | Includes past projects, disputed by Fed Chair | | Actual cost so far | Not finalized | Project ongoing, completion expected in 2027 |
[1] The Washington Post, "Trump and Powell clash over Federal Reserve renovation cost", June 25, 2025. [2] The Wall Street Journal, "Federal Reserve Renovation Cost Balloons", June 26, 2025. [3] CNBC, "Federal Reserve Renovation Project Underway", June 27, 2025. [4] Bloomberg, "Federal Reserve Renovation Cost: What We Know So Far", June 28, 2025.
- The ongoing renovation of the Federal Reserve buildings, initially estimated at $1.9 billion in 2021, has seen its cost revised to approximately $2.5 billion by mid-2025.
- President Trump has criticized the project, suggesting it could be done for a fraction of the estimated cost, between $50 to $100 million, a figure disputed by Federal Reserve Chairman Jerome Powell.
- The disagreement over the renovation cost is not the only point of contention between Trump and Powell; the President has been urging the Federal Reserve to cut interest rates to boost the economy, a request that Powell has refused.
- The upcoming policy-and-legislation landscape, including war-and-conflicts, economics, and general-news, will likely continue to shed light on the ongoing debate between Trump and Powell regarding the Federal Reserve renovation and interest rate policy.
