Daijiworld Media Network- Washington

Washington, Jul 25: In a rare and high-profile visit to the Federal Reserve on Thursday, US President Donald Trump once again took aim at central bank chief Jerome Powell, this time over alleged cost overruns in the bank's multi-billion-dollar renovation project. However, despite trading barbs and expressing frustration, Trump downplayed calls for Powell’s removal, stating, “To do that is a big move, and I just don’t think it’s necessary.”

Trump's remarks came after he became the first sitting US president in nearly two decades to visit the Federal Reserve, a visit that reflected his continued push to assert pressure on the independent institution, particularly over interest rate policies.

The president toured the under-renovation Fed building alongside Chairman Powell, both donning hard hats. The event quickly turned contentious, with Trump calling the $3.1 billion renovation a “luxury project” and questioning the financial management of the build. Powell, in a visibly uncomfortable moment, corrected Trump’s claim, stating the figure included a separate, completed structure. “That’s a third building,” Powell retorted. “It was built five years ago.”

Despite the heated exchange, Trump insisted that there was “no tension” between the two, adding with a smirk, “Well, I’d love him to lower interest rates. Other than that, what can I tell you?”

When asked what he would do if one of his own project managers oversaw such an over-budget job, Trump replied candidly, “I’d fire ‘em.” Yet he clarified that Powell’s position wasn’t at risk, noting, “I just want to see it get finished.”

The spectacle, part policy, part political theatre, highlighted Trump’s increasing pressure on the Fed in his second term. Though cost overruns at the bank have provided fresh ammunition for Powell’s critics, Trump made it clear his primary focus remains on cutting interest rates, repeatedly urging the Fed to take action. “I just want to see one thing happen, very simple: interest rates have to come down,” he reiterated.

Powell, for his part, remained composed throughout the exchange. Fed officials later clarified that rising costs were driven largely by stringent security needs, including blast-resistant windows and enhanced infrastructure. The project, originally budgeted at $1.9 billion, is now estimated at $2.5 billion.

Meanwhile, Powell has requested an independent review by the Fed's inspector general to ensure transparency amid growing political scrutiny. Despite Trump's earlier musings on replacing Powell, the chairman has shown no signs of stepping down and has not ruled out continuing on the board after his term expires in May.

Trump's entourage included fierce Powell critics such as FHFA head Bill Pulte and budget chief Russ Vought, who continued to voice concerns about the renovation’s financial management. Vought said the visit shed light on the project, but “many questions remain unanswered.”

Following the visit, Trump took to social media, stating the renovation “would have been much better if it were never started” and ending with a renewed call for monetary easing:

“Let’s just get it finished and, even more importantly, LOWER INTEREST RATES!”

As the Fed prepares for its policy meeting next week, officials are widely expected to hold interest rates steady, despite Trump’s persistent public pressure. The central bank continues to tread cautiously, balancing inflationary risks with calls for economic stimulus.