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WATCH: Trump and Fed Chair Powell clash over renovation costs in unusual on-camera exchange

The fact-check came in real time, and on camera, as Trump handed Powell a folded piece of paper with the higher cost estimate.

Federal Reserve Chairman Jerome Powell, right, and President Donald Trump look over a document of cost figures during a visit to the Federal Reserve. (AP Photo)

After months of criticising Federal Reserve Chair Jerome Powell, US President Donald Trump took the fight to the Fed’s front door on Thursday as the two argued over the ballooning costs of a project. Powell pushed back on Trump’s public claim that the central bank’s renovation had ballooned to $3.1 billion.

The fact-check came in real time, and on camera, as Trump handed Powell a folded piece of paper with the higher cost estimate. Powell calmly examined the numbers, then corrected the president, “Are you including the Martin renovation?… You just added in a third building.”

Trump insisted, “It’s a building that’s being built,” to which Powell replied, “No, it was built five years ago.”

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$3.1 billion or $2.5 billion? Competing claims over costs

The confrontation occurred during Trump’s visit to the Marriner S Eccles building in Washington, D C, the Fed’s headquarters currently undergoing major renovations. Trump alleged that the project’s cost had ballooned to $3.1 billion, significantly higher than the Fed’s official estimate of $2.5 billion.

“I haven’t heard that from anybody,” Powell said, shaking his head.

However, the bickering was just not limited to the renovation costs. “We have to get the interest rates down,” Trump said later after a short tour, addressing the cameras this time without Powell. “People are pretty much unable to buy houses.”

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However, Powell and other officials have signalled they will likely keep their key rate unchanged at about 4.3 per cent.

Trump alleged that the project’s cost had ballooned to .1 billion, to which Powell shook his head. (AP Photo)

Trump did step back a bit from some of his recent threats to fire Powell before his term ends May 26. Asked if the rising costs of the Fed’s renovation, estimated in 2022 to cost $1.9 billion, was a “fireable offense,” Trump said, “I don’t want to put this in that category.”

The Fed allowed reporters to tour the building before the visit by Trump, who bragged about his own lavish spending on architectural accoutrements that gave a Versailles-like golden flair to his buildings.

A long-running feud

This heated exchange is the latest episode in a long-running feud between Trump and Powell. The White House has repeatedly issued statements accusing Powell and the Fed of hindering economic growth, frequently blaming high interest rates for sluggish housing markets and rising borrowing costs. Trump has regularly used public forums to denounce Powell’s leadership.

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Despite these attacks, Powell has maintained the central bank’s independence and commitment to data-driven decision-making.

(With inputs from AP)

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