President Donald Trump and Federal Reserve Chairman Jerome Powell had a public disagreement over the escalating price tag for renovation work at the Federal Reserve's headquarters on Thursday. 

The rare visit to the Fed occurred as Trump increased his public pressure on Powell to decrease interest rates, while also backing away from his earlier talk of dismissing Powell before his term ends next May.

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Renovation Dispute

During their joint appearance, Trump questioned the costs of ongoing renovations for two historic Fed buildings in Washington, D.C., claiming expenses had exceeded $3.1 billion, according to CNBC. 

Powell countered, noting Trump had factored in costs from a third government building that was constructed five years prior. 

Both men toured the site together while wearing hard hats and told the press they would review the situation further. 

Trump remarked, "It's got a long way," before completion.

Political Context

Trump had considered firing Powell, which would have been a controversial and legally uncertain move, but stated on Thursday, “To do that is a big move, and I just don’t think it’s necessary.”

Powell has been a frequent target of criticism from Trump and his allies, including Bill Pulte, director of the Federal Housing Finance Agency, who was present for the visit and has called for Powell's resignation.

Interest Rate Pressure

Trump's main criticism continues to center on Powell's refusal to lower interest rates further. Despite Trump nominating Powell in 2017, he has accused the Fed chair of incompetence and political bias. 

Trump claims that lower rates would save the country hundreds of billions in interest payments. While the Fed did cut its primary interest rate by a full percentage point in late 2024, taking it to a 4.25%-4.5% range, it has left rates unchanged since December. 

Trump's Remarks After the Visit

Trump adopted a more conciliatory tone later, describing his tour with Powell as a "Great Honor" and acknowledging that the renovation "has a long way to go." 

"It would have been much better if it were never started, but it is what it is and, hopefully, it will be finished ASAP,” he conceded.

Trump did, however, underscore the high costs, but said the U.S. is strong enough financially to handle them.

Benzinga reached out to the White House for comment but had not heard back.

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