Trump has publicly sparred with Powell. But hinted that he has no plans to fire him

US President Donald Trump got into a brief altercation with the head of the Federal Reserve System Jerome Powell in the presence of journalists. The reason for it was the cost of renovation of the central bank's headquarters, which caused criticism in the White House. Trump on July 24 personally came to the Fed to inspect the renovations, which is seen as a sign of increased attacks on Powell. Trump himself has said he sees no need to fire the Fed chief ahead of the deadline. 

On Thursday, July 24, Trump personally visited the Fed and toured the ongoing renovations, accompanied by Powell. After the inspection, they approached reporters, and Trump said the cost of the renovations had "gone up a little - or a lot": instead of the projected $2.5 billion, it was now $3.1 billion. 

Powell shook his head sharply at this and, interrupting Trump, said he was not aware of such a thing. "It just came to light," Trump replied. He pulled a piece of paper from his jacket pocket and held it out to Powell. The man, after studying the document, said it was an estimate that included the cost of another building, work on which he said had been completed five years ago.

The dialog was a rare example of a public confrontation between a U.S. president and a central bank governor, the Financial Times notes. That said, Trump made it clear during the visit that he did not believe it was necessary to dismiss Powell from his post early. "It's a major step, and I just don't think it's necessary," he said. - I believe he will do the right thing."

Trump's personal visit to Fed headquarters is seen as another chapter in his campaign to pressure Powell to cut rates or resign, reports CNBC. 

"It is highly unusual for presidents to visit a Federal Reserve office. The last time George W. Bush Jr. did such a thing was when he attended the swearing-in ceremony of Ben Bernanke, who headed the Fed during the 2008 global financial crisis," the FT notes. The publication believes that Trump's Fed visit is a signal of increased attacks on the head of the US central bank.  

For months, Trump has repeatedly accused Powell of overly tight monetary policy and called for lower rates. This summer, a new cause for criticism of the central bank chief was the estimated restoration of two historic Fed buildings in Washington, D.C. Although the project was approved back in Trump's first term in 2021, the White House recently called for an audit of the Fed's renovation costs. Powell himself has rejected the criticism, calling the renovation spending transparent and necessary. 

Powell's term as Fed chief expires in May 2026. Under Fed law, Trump cannot remove him without "good cause" - such as a finding of negligence or malfeasance. Earlier in July, Trump stated that an early firing of Powell was "highly unlikely unless he has to go" because of fraud.

This article was AI-translated and verified by a human editor