President Donald Trump is set to step into the Federal Reserve headquarters in Washington, D.C. on Thursday, a move that sharpens his ongoing clash with Fed Chair Jerome Powell.
According to Fox Business, Trump is joining administration officials to inspect the Fed’s headquarters after a staggering $2.5 billion renovation. For weeks, the president has demanded that Powell slash interest rates, only to face a stone wall of resistance.
Some in Trump’s circle have called the renovation costs a grotesque misuse of taxpayer money, even suggesting it could justify Powell’s dismissal. The price tag alone raises eyebrows when families are squeezed by inflation and stagnant savings.
Critics within the administration argue that the Fed’s lavish spending on its Eccles Building is indefensible. They see it as a symbol of bureaucratic excess at a time when fiscal restraint should be priority one.
Rep. Anna Paulina Luna, a staunch Trump ally from Florida, took it further by referring Powell to the Department of Justice for criminal charges on Monday. She accuses him of perjury in testimony about the renovation, claiming he misled Congress with false statements.
Luna’s letter to the DOJ stated that Powell “made several materially false claims” during his June 25, 2025, testimony before a Senate committee. Her allegations of lying about luxury amenities and the building’s maintenance condition deserve a hard look, as trust in public officials can’t be optional.
In response, Powell has denied any wrongdoing and ordered a formal watchdog investigation into the renovation costs. His defenders argue that firing him over this would destabilize markets more than any rate hike ever could.
Trade outlet Mortgage Professional reported that Powell stands firm against the perjury claims, while the Fed’s website now offers a video tour and details of the renovation plans. Transparency is a start, but it doesn’t erase questions about why $2.5 billion was deemed necessary.
Meanwhile, Trump has kept up a steady drumbeat of criticism over Powell’s refusal to cut rates, though he recently told reporters it’s “highly unlikely” he’d fire him. That restraint might be pragmatic, but it doesn’t hide the frustration boiling over in conservative circles.
Treasury Secretary Scott Bessent has pointed out that Powell’s term ends in May 2026, suggesting there’s no rush to oust him. This cooler head might be a nod to avoiding unnecessary economic turbulence.
Moderate Republicans echo that caution, warning that a sudden dismissal could rattle investors and undermine confidence in the Fed’s independence. They’re not wrong to worry, but patience wears thin when policy feels disconnected from everyday struggles.
Powell’s insistence on holding rates steady, as Trump sees it, stifles savings and economic growth for working Americans. If the Fed can spend billions on a building, surely it can find room to ease the burden on Main Street.
Trump’s visit to the Fed headquarters is more than a photo op; it’s a public challenge to an institution many feel has lost touch. Accountability matters, whether it’s about renovation dollars or interest rate decisions.
Yet, the tightrope here is real: pushing too hard on Powell risks shaking an already jittery economy. Finding a way to demand results without sparking chaos is the puzzle Trump must solve.
In the end, this feud isn’t just about one man or one building; it’s about whether the Federal Reserve serves the people or its own insulated priorities. With inflation biting and savings shrinking, Americans deserve a Fed that listens as much as it lectures.
