Trump rebukes Jerome Powell live on air for alleged cost overruns on Fed repairs
After repeatedly publicly inviting him to resign, the Republican came face-to-face with the chairman of the Federal Reserve (Fed).
Trump and Powell at the Fed/ Andrew Caballero- Reynolds.
Donald Trump met with Jerome Powell. After repeatedly publicly inviting him to resign, the Republican came face-to-face with the chairman of the Federal Reserve (Fed). The reason was the series of repairs being carried out at the Fed building, which precisely led to an exchange that soon went viral.
Wearing white hard hats, they toured the headquarters and then approached a group of journalists waiting for them. Trump was accompanied by Senators Tim Scott (R-SC) and Thom Tillis (R-NC), who are on the committee overseeing the work.
At one point, Trump questioned Powell about the cost of the renovations, which were initially estimated at $2.5 billion. "It looks like it's about $3.1 billion. It went up a little bit — or a lot," the president blurted out, pulling out a piece of paper to back up his words.
Powell, who first shook his head, pulled out his glasses to read the document. Seconds later, he explained that the president's numbers included the Martin Building renovations, completed years ago. Citing his career as a real estate developer, the president claimed he would fire someone for cost overruns.
Just weeks earlier, Trump publicly asked Powell to resign as Fed chairman, claiming his reluctance to lower interest rates was hurting Americans.
Powell's term at the helm of the Fed ends in eight months, so Trump will be responsible for nominating his successor. As reported by The Wall Street Journal, among the main names under consideration are Kevin Warsh, former Fed board member; Kevin Hassett, director of the National Economic Council; Scott Bessent, current Treasury secretary; David Malpass, former president of the World Bank; and Christopher Waller, current board member.
Bessent has already spoken publicly about this speculation, noting that he would be open to taking the job. "I'll do whatever the president wants," he stated.
Russell Vought against Fed renewals
"Chairman Jerome Powell has grossly mismanaged the Fed. While continuing to run a deficit since FY23 (the first time in the Fed's history), the Fed is way over budget on the renovation of its headquarters. Now up to $2.5 billion, roughly $700 million over its initial cost," he wrote on X in mid-July.
"These renovations include terrace rooftop gardens, water features, VIP elevators, and premium marble. The cost per square foot is $1,923--double the cost for renovating an ordinary historic federal building. The Palace of Versailles would have cost $3 billion in today's dollars!" the OMB director added.
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