President Donald Trump’s upcoming visit to the Federal Reserve is stirring the pot in Washington. He’s set to tour the newly renovated headquarters on Thursday, a move that’s less about admiring fresh paint and more about flexing muscle against Fed Chair Jerome Powell.
Fox Business reported that Trump will join administration officials to inspect the Federal Reserve’s headquarters, freshly revamped at a jaw-dropping $2.5 billion cost.
This visit follows weeks of Trump publicly prodding Powell to slash interest rates, a demand the Fed chief has resisted. It’s a high-stakes showdown, with the renovated Eccles Building as the backdrop.
The renovation itself has become a lightning rod for criticism. Some administration officials have called the $2.5 billion price tag a wasteful splurge of taxpayer money.
They’ve even whispered that the lavish spending could be grounds for Powell’s dismissal, though Trump himself has downplayed that possibility.
Rep. Anna Paulina Luna, R-Fla., isn’t holding back, accusing Powell of perjury over the renovation. She claims he lied under oath on June 25, 2025, during Senate testimony about the Eccles Building’s upgrades.
Luna’s allegations of “lavish amenities” and misrepresented maintenance needs have been referred to the Department of Justice for criminal review.
“On June 25, 2025, Chairman Powell provided testimony under oath before the U.S. Senate Committee on Banking, Housing, and Urban Affairs regarding the renovation of the Federal Reserve’s Eccles Building,” Luna wrote in her letter to the DOJ.
“In his statements, he made several materially false claims.” Her accusations aim straight at Powell’s credibility, but the Fed chair has denied any wrongdoing.
Powell, for his part, has pushed back hard, rejecting Luna’s perjury claims as baseless. He’s ordered a formal watchdog probe into the renovation costs to clear the air. The Federal Reserve’s website even boasts a video tour of the upgrades, as if to say, “See? Nothing to hide here.”
Trump’s visit isn’t just about shiny new offices; it’s a calculated move in his ongoing feud with Powell. For weeks, he’s been vocal about wanting lower interest rates to juice the economy, a policy Powell hasn’t embraced. Yet, Trump told reporters it’s “highly unlikely” he’d fire Powell, suggesting a strategic pause in the saber-rattling.
“It was highly unlikely” he would fire Powell, Trump said this week. That olive branch might be less about peace and more about avoiding the market chaos that moderates warn a firing would unleash. It’s classic Trump: push hard, then pull back just enough to keep everyone guessing.
The $2.5 billion renovation, meanwhile, has critics in Trump’s circle fuming. They argue the funds could’ve been better spent elsewhere, like on tax cuts or infrastructure. The optics of a gleaming Fed headquarters don’t sit well when families are pinching pennies.
Treasury Secretary Scott Bessent has pointed out that Powell’s term as Fed chair ends in May 2026. That deadline looms large, giving Trump leverage to keep the pressure on without pulling the trigger on a firing. It’s a waiting game, with Powell’s every move under a microscope.
Luna’s perjury accusations add fuel to the fire, painting Powell as a bureaucrat caught in a web of his own making.
She claims he exaggerated the building’s disrepair to justify the costly upgrades. If true, it’s a scandal that could haunt the Fed’s reputation for years.
Powell’s defenders, including some moderate Republicans, argue that ousting him would tank financial markets. They see his steady hand as a bulwark against economic volatility, even if his renovation decisions raise eyebrows. It’s a tough sell when taxpayer dollars are at stake.
The Federal Reserve’s video tour of the renovated Eccles Building tries to spin the project as a necessary modernization. But to skeptics, it’s a glossy distraction from questions about fiscal responsibility. Transparency, not PR, is what critics demand.
Trump’s visit could amplify these tensions or signal a détente in his battle with Powell. His decision to tour rather than terminate suggests a pragmatic streak, balancing MAGA demands with market realities. Still, the pressure on Powell to deliver lower rates isn’t going away.
