WASHINGTON – President Donald Trump is voicing his concerns regarding cost overruns related to Federal Reserve reforms during a recent site visit with Chairman Jerome Powell.
Trump, who has been urging the Fed to reduce interest rates, indicated that exceeding the budget is not a reason for dismissal.
He posed a rhetorical question, “As a real estate developer, what would you do with project managers who go over budget?”
Trump elaborated, stating, “Generally speaking? I’d fire them.”
A reporter followed up, asking if cost overruns would warrant such action. Trump hesitated, expressing his support for Powell and wanting to avoid personal criticisms.
“In many ways, it’s unfortunate, but this project has been in motion for a while… it seems like it might take a long time to finish,” he noted.
During his remarks, Trump highlighted that the current estimated cost of the project has climbed to $3.1 billion, alongside Powell and Senate Banking Committee Chairman Tim Scott of South Carolina.
This figure has increased from a previous estimate of $2.7 billion, raising questions about the project’s trajectory. The original forecasted budget for 2021 was $1.9 billion; however, Powell contested Trump’s assertion that the cost reached $3.1 billion.
Trump reiterated, “So it appears to be about $3.1 billion.”
Powell responded, expressing skepticism and reviewing the document Trump provided him.
After examining the information, Powell argued that Trump was mistakenly including costs related to the renovation of an additional building, the Martin building, which has already been completed.
Trump pressed Powell further, asking whether he anticipated any additional overruns.
“I don’t anticipate any,” Powell replied while acknowledging some budget flexibility but maintaining that completion is expected in 2027.
When prompted about possible criticisms regarding interest rates, Trump stated, “Well, I hope he will lower them.”
During the construction tour, he commented critically on certain building decisions, describing the overall situation as “very luxurious.” He specifically criticized the extensive basement renovations, mentioning the need for an “inverse bathtub” to handle underground water.
He remarked, “The basement is usually the least desirable and most costly part of building, especially with the water line present.” He elaborated on the challenges, emphasizing the complexity and expense involved in the construction.
