Trump and Federal Reserve Chairman Jerome Powell got into an awkward on-camera clash during the president’s tour of the Fed’s headquarters.
President Donald Trump’s tour of a major renovation project at the Federal Reserve Building was met with anticipation as the fate of Federal Reserve Chair Jerome Powell appeared uncertain.
During the president’s visit, his friction with Powell was clear as the two seemed to have a tense exchange while speaking to the media, though Trump said there was “no tension.”
In recent weeks, Trump has expressed his frustration with Powell for not lowering interest rates, with the president pointing out the chairman’s record of taking swift action on rates under former President Joe Biden.
President Donald Trump, left, and Federal Reserve Chair Jerome Powell speak during a tour of the Federal Reserve Board building, which is currently undergoing renovations, in Washington, D.C., on July 24, 2025. (REUTERS/Kent Nishimura / Reuters)
TRUMP INSISTS ‘NO TENSION’ WITH POWELL AFTER MEETING DESPITE AWKWARD CLASH ON CAMERA OVER RENOVATION COST
1. Trump says he’s not firing Powell
When a reporter asked Trump what he would do about a project manager who went over budget — referencing Powell and the Fed renovation — the president said that he would usually fire that employee. However, despite his answer and his recent public criticism of Powell, Trump said firing the Fed chair was an unnecessary step.
“To do that is a big move, and I just don’t think it’s necessary. And I believe that he’s going to do the right thing,” Trump told reporters.
The statement stands in stark contrast with a Truth Social post from April in which Trump said, “Powell’s termination cannot come fast enough!” However, a few days after that post, Trump told reporters that he had “no intention of firing” Powell.
Whether or not Trump fires Powell, the Fed chair could be out the door soon, as his term ends in May 2026.
TRUMP COMPARES TALKING TO POWELL TO ‘TALKING TO A CHAIR’ WHILE TOUTING HIS OWN ECONOMIC PREDICTIONS
2. Powell and Trump argue over cost estimate of Fed building renovation
In a particularly tense moment in front of the media, Trump and Powell disagreed over the estimated cost of the renovation. When Trump said the project had an estimated cost of $3.1 billion, Powell shook his head.
“I’m not aware of that,” Powell said to the president.
Trump then pulled out a document to show Powell presumably showing the cost he cited before. The Fed chair read through the document on the spot and said the number that Trump cited included a project that was completed years ago.
The president attempted to defend his claim, saying that the building in question was “part of the overall work.”
Powell then fired back, saying “It’s not new.”
Trump asked Powell if he expected there to be “any more additional cost overruns” in the renovations and the Fed chair said no, but that “we’re ready for them.”
Later in the tour, Trump called the renovation a “very expensive project” that “got out of control,” though he added “that happens. It’s a shame.”
President Donald Trump, left, points to a document as Federal Reserve Chair Jerome Powell fact-checks the numbers on it during a tour of the Federal Reserve Board building, which is currently undergoing renovations, in Washington, D.C., July 24, 2025 (REUTERS/Kent Nishimura/File Photo / Reuters)
A LOOK AT THE UNFOLDING BATTLE BETWEEN TRUMP AND POWELL OVER FED POLICY
3. Trump dislikes the project but wants it to get done
Trump told reporters at the Fed building that it was “too bad it started,” but that he “would like to see it get finished.” The end date for the project might be further away than the president previously hoped, as Powell said to reporters that the Fed did not expect renovations to be completed by 2027.
A reporter asked whether Trump thought the renovation cost was a fireable offense, which he denied.
“I don’t want to put that in this category. It’s a very complex thing that could have been made simpler,” Trump said.
The celebrity real estate mogul–turned–president compared the project at the Fed to one of his past deals. Trump claimed that his company spent $200 million to build the Old Post Office hotel — now owned by Hilton — and that it was a “much bigger project” than what was happening with the Fed.
Federal Reserve Chair Jerome Powell points a finger and speaks as President Donald Trump, next to U.S. Senator Tim Scott (R-SC), looks on and listens during a tour of the Federal Reserve Board building, which is currently undergoing renovations, in W (REUTERS/Kent Nishimura / Reuters)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
4. Trump denies ‘tension’ — but pushes Powell to lower interest rates
While he denied any “tension” or “pressure” between himself and Powell, Trump repeatedly pushed for lower interest rates throughout his visit. The president has continued pressuring Powell — who he appointed during his first term in 2017 — to lower rates.
Trump also mentioned the issue in a Truth Social post after the visit, saying, “With all of that being said, let’s just get it finished and, even more importantly, LOWER INTEREST RATES!”
The day before his visit, Trump also put an emphasis on the need to cut rates, writing on Truth Social that “Housing in our country is lagging because Jerome ‘Too Late’ Powell refuses to lower interest rates. Families are being hurt because interest rates are too high, and even our country is having to pay a higher rate than it should be because of ‘Too Late.’ Our rate should be three points lower than they are, saving us $1 trillion per year (as a country). This stubborn guy at the Fed just doesn’t get it — Never did and never will. The Board should act, but they don’t have the courage to do so!”
Known for assigning nicknames to opponents, Trump began calling Powell “Too Late,” as his frustration with the Fed chair’s reluctance to cut rates grew.
