On Thursday, July 24, 2025, an extraordinary moment unfolded when Federal Reserve Chair Jerome Powell publicly called President Donald Trump a liar in front of reporters. The confrontation took place during a guided tour of the central bank's historic buildings in Washington, where both men, wearing white construction helmets, fielded questions from the press.

Tensions rose when Trump claimed that the cost of the Fed's renovation had exceeded $3.1 billion. Powell stopped, turned to the journalists, and calmly stated: “That’s not true. I haven’t heard that from anyone.” He added that the figure cited by Trump included a separate federal building that “was built five years ago.”

Trump responded uncertainly: “Well, we’ll take a look. We’ll see what’s going on. It’s still a long road.”

VIDEO: https://www.youtube.com/watch?v=fO9_N_2yY8M

A Political Firestorm Inside the Fed’s Headquarters

The scene was remarkable not only for its confrontational nature but also for the fact that it took place between the President of the United States and the head of the central bank—appointed by Trump himself in 2017. Powell publicly challenged the credibility of the man who had once nominated him.

While trying to brush off the moment, Trump took the opportunity to renew pressure on Powell to cut interest rates. Asked by a reporter what Powell could do to end the ongoing verbal attacks, Trump said: “Well, I really wish he’d lower interest rates.”

Trump Administration Escalates Pressure on the Fed

Trump has recently hinted at replacing Powell, even though legal experts emphasize that firing the Fed chair is vastly different from dismissing a cabinet secretary—it requires legal cause. The U.S. Supreme Court has recently reaffirmed the Fed’s independence.

One of Trump’s close allies, Billy Pulte—who also leads the Federal Housing Finance Agency—posted on social media platform X the day before the tour: “Jerome Powell must resign.” His message echoed the growing campaign to force rate cuts before year-end.

Asked if Powell’s handling of the renovation was grounds for dismissal, Trump replied: “I wouldn’t categorize it that way. I’d just like to see it completed.”

Renovation as a Backdrop for Political Pressure

Throughout the tour, Trump repeatedly called for lower interest rates and described the current condition of the building as “luxurious,” even while suggesting the project had vastly exceeded its budget.

Meanwhile, Treasury Secretary Scott Bessent appeared on Fox Business, openly questioning the Fed’s renovation spending. “I don’t really understand what’s going on with those costs,” he said, adding that the central bank should undergo an internal review because it was becoming “a new kind of central planning.” He labeled the institution “an irresponsible agency,” echoing Trump’s key talking points.

Hundreds of Billions in Interest—No Rate Cuts

Trump insists that cutting rates could save the government hundreds of billions of dollars in interest payments—especially since the federal debt’s interest costs topped $1.1 trillion in 2024. But Powell continues to resist political pressure, citing broader economic data that do not yet support rate cuts.

So far this year, Powell has not cut rates even once—despite the Trump administration’s increasingly aggressive campaign.

Trump’s Final Word on Truth Social

After returning to the White House, President Trump shared the following message on Truth Social:

“It was a great honor to tour the renovation (and new construction!) of the Federal Reserve building with Chairman Jerome Powell, Senator Tim Scott, and others. There’s still a long road ahead… The budget overrun is significant, but on the other hand, our country is doing very well and can afford almost anything—including this building!”

#TRUMP , #Powell , #CryptoCommunity , #Fed , #FederalReserve

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