Federal Reserve Chair Jerome Powell disputed President Donald Trump's cost estimate of renovations at the central bank's Washington headquarters.
Trump and Powell briefly addressed reporters during a July 24 tour of the construction site, which has been a source of controversy because of the project's cost overruns.
When the renovation project was approved in 2017, the budget was $1.9 billion. It has since increased to $2.5 billion because of inflation, asbestos and soil contamination, and extended timelines.
The president stated during the tour that the price tag has increased by an additional $600 million.
"It looks like it’s about $3.1 billion. Went up a little bit, or a lot," Trump said.
Powell, standing next to the president, shook his head and said: “I’m not aware of that, Mr. President. I haven’t heard that from anybody at the Fed."
After Trump retrieved a piece of paper from his suit jacket and handed it to Powell, the Fed chair read the document and confirmed that the upwardly revised estimate included the cost of a third building that had been completed five years ago.
“It’s part of the overall work,” the president responded.
“It’s not new,” Powell replied.
"So we’re going to take a look," Trump continued. "We’re going to see what’s happening, and it’s got a long way [to go]."
"But it is what it is and, hopefully, it will be finished ASAP," he said.
"The cost overruns are substantial but, on the positive side, our country is doing very well and can afford just about anything — even the cost of this building!"
Following his brief meeting with Powell, Trump later told the press that there was "no tension” between him and the central bank head.
“I think he had more tension with my great senator to the right," he said, pointing to Scott. "He’s a pretty tough cookie."
Asked whether he plans to fire Powell before his term expires in May 2026, Trump reaffirmed that he would not.
“I don’t think we’re going to do that," Trump said.
Trump and senior administration officials have regularly urged Powell and his colleagues to lower interest rates, projecting that it would reduce the federal government’s interest costs.
"Every point is worth $365 billion, so we want to get the rates down," Trump told reporters.
Annual federal interest payments exceeded $1 trillion last year. The Treasury Department projects that interest charges will top $1 trillion again in fiscal year 2025.
For months, the central bank has repeatedly stated that it can afford to be patient before cutting rates as monetary policymakers wait for further clarity on tariff-related inflation data.
The Fed is expected to leave the benchmark federal funds rate unchanged in a range of 4.25 percent to 4.5 percent at the July 29–30 Federal Open Market Committee policy meeting. Interest rates have held steady since January.
Investors do not expect the central bank to pull the trigger on a quarter-point rate cut until the September meeting.