Fed Faces Scrutiny Over Costly Headquarters Renovation Amidst Tensions with Trump

The Federal Reserve expressed gratitude for President Trump's encouragement in completing its headquarters renovation, despite Trump’s criticism of the project's rising costs. During his visit, Trump and Fed Chair Powell debated over the renovation budget and discussed interest rates, which Trump advocates lowering to spur economic growth.

The Federal Reserve expressed its gratitude on Friday for President Trump's encouragement to complete the renovation of two headquarters buildings in Washington, despite Trump's criticism of the project's escalating costs.

The Fed stated its commitment to being careful stewards of resources. The President's visit featured a tense interaction with Fed Chair Jerome Powell, with disagreements over the project's budget. Currently estimated at $2.5 billion, the project has been a point of contention in the Trump administration's criticisms of Powell's leadership.

Additionally, Trump and Powell discussed interest rates privately, with Trump pressing for lower rates to boost the economy. The Fed is expected to maintain the current benchmark interest rate in the upcoming policy meeting.

(With inputs from agencies.)