Topline
In a moment that quickly went viral Thursday, Federal Reserve Chair Jerome Powell fact-checked President Donald Trump during an on-camera tour of the Federal Reserve Headquarters, as the pair wore hard hats and smiled for the cameras while Trump claimed the Fed’s costs had ballooned and Powell shook his head and then disputed the president’s claim.
President Donald Trump presents Federal Reserve Chair Jerome Powell with what Trump called a list of … More
Key Facts
Powell rejected Trump’s claim that the cost of renovations to the building are now an estimated $3.1 billion, up from a previous estimate of $2.7 billion, telling Trump and reporters gathered for the tour the estimate included renovations to a separate building that were done five years ago.
The cost of renovations has gone up from initial estimates, though not to $3.1 billion, according to previous reports—they had ballooned to nearly $2.5 billion by 2023, up from a $1.9 billion budget, The Wall Street Journal reported.
When reporters asked Trump during the tour how he would handle a subordinate overseeing a project that ran over budget, Trump said “I’d fire him.”
Trump, however, reiterated that he is unlikely to fire Powell (and likely doesn’t have the power to), telling reporters “to do that is a big move and I just don’t think it’s necessary, and I believe he’s going to do the right thing.”
Key Background
The highly-watched tour came as Trump has expressed frustration with Powell over the chairman’s hesitation to lower interest rates. He toured the renovations at the Federal Reserve as Republicans have made the cost overrun their latest attack line against Powell. Trump claimed during the tour the renovations were “luxurious.” Trump has previously called for a probe of the renovations. Office of Management and Budget Director Russell Vought recently accused Powell of an “ostentatious” overhaul of the building, while demanding answers to a series of questions about the renovations.
Further Reading
White House Latest Attack On Jerome Powell: Claims Federal Reserve Renovations Are ‘Ostentatious’ (Forbes)
How Soon Could Trump Replace Fed Chair? What To Know As He Reportedly Considers Powell Successor (Forbes)
Trump Says Fed Chair Powell’s Termination ‘Cannot Come Fast Enough’ (Forbes)