Overview

• During a July 24 visit to Fed headquarters, Trump claimed renovation costs surged from $2.7 billion to $3.1 billion, prompting Powell to assert the higher figure wrongly included a building completed five years ago.
• Federal Reserve budget documents show the project’s actual cost at $2.46 billion, and Powell acknowledged overruns while denying any lavish or VIP amenities.
• The Federal Open Market Committee has held the benchmark interest rate at 4.25–4.50 percent so far this year and expects to wait on cuts until the impact of Trump’s tariff policies on inflation becomes clear.
• Trump’s public challenge over renovation expenses reflects his broader pressure on the Fed for rate cuts and feeds speculation about a possible attempt to remove Powell before his 2026 term ends.
• Powell emphasized that interest-rate decisions will continue to rely solely on economic data, defending the Fed’s statutory independence against political interference.