Jerome Powell Shuts Down Trump’s Misleading Claims About Fed Renovation Costs

 

Jerome Powell Publicly Refutes Trump’s False Claims About Federal Reserve Renovation Costs

During a recent visit to the Federal Reserve to inspect its building renovations, former President Donald Trump made a series of exaggerated claims about the project’s cost—only to be fact-checked on the spot by Fed Chair Jerome Powell in front of cameras and reporters.

As Trump toured the facilities, he claimed the renovation costs had ballooned to $3.1 billion. "So we're taking a look, uh, and it looks like it's about $3.1 billion. It went up a little bit. Or a lot," he said, prompting a visibly surprised Powell to interject.

"I'm not aware of that," Powell calmly replied as Trump handed him a document. Upon reviewing it, Powell clarified that Trump had inaccurately combined the cost of the current renovation with a separate project—the already-completed Martin Building renovation, which was finished five years ago.

“This came from us?” Powell asked skeptically. After a short back-and-forth, he explained, “You're including the Martin renovation. You just added in a third building. That's a third building.” When Trump continued to argue, Powell reiterated, “It's not new.”

Trump has reportedly been using the inflated figures to justify a possible termination of Powell, despite the Supreme Court having made clear that the President can only remove the Fed Chair for cause. According to reports, Trump has already shared a draft termination letter with GOP lawmakers.

Many believe the dispute over renovation costs is merely a pretext. Trump has publicly criticized Powell for not cutting interest rates—something Powell has repeatedly explained cannot happen yet due to economic instability, much of which stems from Trump-era tariff policies that created global uncertainty.

To set the record straight, Powell recently wrote a detailed letter to the Office of Management and Budget, clarifying the scope and necessity of the project:

“The project is large in scope because it involves the renovation of two historic buildings on the National Mall that were first constructed in the 1930s… neither building has seen a comprehensive renovation since they were first constructed.”

He further detailed the removal of hazardous materials, full system replacements, and structural safety work. Powell emphasized that the Fed had worked with oversight bodies to scale back nonessential elements to control costs and limit delays.

Despite repeated misinformation from Trump, the Fed’s leadership continues to proceed with transparency and professionalism—making this public correction from Powell a rare but revealing moment that underscores the ongoing tension between evidence-based governance and political theater.