Powell Surprised by Trump’s Cost Revelations

Federal Reserve Chairman Jerome Powell appeared taken aback on Thursday when President Donald Trump presented him with information suggesting that the cost of the Fed’s renovation projects has risen substantially. Powell noticeably shook his head in reaction to Trump’s $3.1 billion estimate, which exceeds the previously reported figures of $2.5 billion.

During the encounter, Trump began discussing ongoing construction efforts at the Fed. He mentioned, “We’re just looking at what’s going on. It’s the construction work here; they’re building and expanding basements that don’t exist. It’s a very costly job, that’s for sure.” Republican Senator Tim Scott of South Carolina, who has been involved in these discussions, seemed to echo Trump’s concerns about the rising costs.

Scott remarked that there was a significant increase in costs, noting how the $2.7 billion estimate has now escalated to $3.1 billion, which raised eyebrows during their discussion.

This renovation issue has prompted Florida Republican Rep. Anna Paulina Luna to refer Powell to the Department of Justice over potential allegations of perjury, catching Powell off guard when Trump brought it up. Powell, appearing shocked, put on his glasses to review papers that Trump had pulled from his jacket, as Scott confirmed the $3.1 billion figure.

Powell clarified that the $3.1 billion figure encompasses a specific project known as “The Martin Renovation.”

There have been reported tensions between Trump and Powell, particularly concerning the Fed’s reluctance to lower interest rates. When a reporter asked Trump how he would handle a major cost overrun from a project he managed as a real estate developer, Trump didn’t hold back: “Generally speaking, what would I do? I’d fire him.”