WASHINGTON–President Donald Trump, who has been critical of cost overruns on renovations at the Federal Reserve, toured the ongoing construction there on Thursday, alongside Chairman Jerome Powell.
Trump, who has repeatedly called on the Fed to lower interest rates, said that the cost overruns are not a fireable offense.
“As a real estate developer, what would you do with a project manager who would be over budget?” one reporter asked Trump.
“Generally speaking? What would I do? I’d fire him,” Trump said.
Another reporter asked Trump if he believes the cost overruns give him “cause to do that.”
“Well, I’m here just really with the chairman. He’s showing us around, showing us the work, and so I don’t want to get that–I don’t want to be personal. I just would like to see it get finished,” Trump said.
“And in many ways, it’s too bad it started, but it did start, and it’s been under construction for a long time… It’s going to be a real long time because it looks like it’s got a long way to go,” he added.
Trump said moments before that the cost of the total project had reached $3.1 billion while flanked by Powell and Senate Banking, Finance, and Urban Affairs Committee Chairman Tim Scott (R-SC).
Previously, the number had been at $2.7 billion, which exceeds what Fortune reports was a $1.9 billion projected pricetag for the project in 2021. However, Powell pushed back on Trump’s claim that the renovations had reached $3.1 billion.
“So we’re taking a look, and it looks like it’s about $3.1 billion–went up a little bit or a lot. So the $2.7 [billion] is now $3.1 [billion],” Trump said.
Powell responded, “I’m not aware of that,” and inspected a paper Trump handed to him.
After looking at the paper, Powell claimed Trump was adding the cost of renovations for a third building, the Martin Building, which has already been completed.
Trump also asked Powell if he anticipated any more cost overruns.
“Don’t expect them. We’re ready for ’em, but we have a little bit of a reserve that we may use, but no, we don’t. We expect to be finished in 2027,” Powell said.
When asked if Powell could say anything that would make the president rein in his criticisms of the chairman, Trump said, “Well, I’d love him to lower interest rates” as he slapped Powell on the back, drawing a laugh from the chairman.
Later during the tour, Trump spoke critically of some construction decisions, calling it “a very luxurious situation taking place.” Specifically, he zoned in on the basement renovation of one building he toured and the fact that it requires what is called “a reverse bathtub” due to water lines underground.
“Always, a basement is the worst space in a building, and it’s also the most expensive space to build, and especially here, because you have the water line,” Trump said.
“They’re going down into the water, so they have to build a reverse, what’s called a reverse bathtub. The water has to be kept out. It’s very expensive construction,” he added.
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