WASHINGTON — A rare on-site face-off between President Donald Trump and Federal Reserve Chair Jerome Powell turned tense Thursday as the two clashed over just how expensive the Fed’s massive Washington renovation has become.

Standing side by side in hard hats at the construction zone — which includes the main Fed headquarters and a neighboring historic building — Trump doubled down on his criticism that the price tag has ballooned out of control. Powell, meanwhile, pushed back in real time, disputing the president’s new math.

Last week, Trump openly floated firing Powell over the escalating cost, but backed off Thursday, telling reporters: “Look, I would love to see it completed. I don't want to put that in this category. It's a very complex thing that could have been made simple.”

According to Trump, the project’s cost now stands at $3.1 billion, up from the Fed’s latest official estimate of about $2.5 billion — already a significant increase from its original $1.9 billion estimate when plans were approved back in 2017.

“You just added in a third building is what that is — that's a third building,” Powell said, examining Trump’s document on-site.

"Well, I know but it's a building that's being built," Trump shot back.

"No — it was built five years ago. We finished Martin five years ago," Powell responded, referencing the Martin Building renovation.

"It's part of the overall work," Trump insisted.

"It's not new," Powell reiterated.

No Firing — For Now

The dramatic exchange underscored ongoing tensions between the president and the Fed. While Trump has frequently branded Powell — his own appointee — a “numbskull,” a “Trump Hater,” and a “stubborn mule,” he stopped short of pulling the trigger on firing him outright, saying Thursday: “To do that is a big move, I just don't think it's necessary. And I believe he's going to do the right thing.”

By “the right thing,” Trump means lower rates. The president repeated his demand for aggressive interest rate cuts, arguing borrowing costs should fall despite Powell’s caution over inflation and the economic fallout of Trump’s tariffs.

"I just want to see one thing happen, very simple — interest rates have to come down," Trump said.

A ‘Luxurious’ Project or Necessary Upgrade?

After the tour, Trump didn’t hide his disdain for what he called “a very luxurious situation.” Powell, for his part, defended the project, reminding the president that preserving historic architecture in downtown Washington while expanding the Fed’s operations comes with big, unavoidable costs.

Fed officials say that much of the ballooning budget stems from tariffs on steel and aluminum that Trump himself imposed in 2018, plus inflation-driven spikes in construction materials and labor costs. Steel prices alone have risen about 60% since the initial plan was approved.

Renovating two historic structures instead of building a new one from scratch also complicated timelines and costs. One of the buildings — at 1951 Constitution Avenue — required extra marble additions, partly at the insistence of a design commission that included Trump-appointed members, who argued against modern “glass box” features.

A Risky Precedent

The project is set to wrap up in 2027 — unless further delays or cost overruns surface. Meanwhile, the Fed’s independence remains a key concern for economists and investors who worry that firing Powell could send markets into turmoil.

Still, Trump confirmed he’d quizzed Republican lawmakers about firing Powell outright, telling reporters: “Almost all of them said I should.”

For now, Powell keeps his job — and his hard hat — while the historic Fed headquarters gets its billion-dollar facelift under the watchful gaze of an impatient president.

Originally reported by CBS News.