Former US President Donald Trump and Federal Reserve Chair Jerome Powell have publicly clashed over the spiralling costs of renovating the Federal Reserve's headquarters in Washington, DC. The heated exchange, captured on video, reveals deep tensions over fiscal responsibility and government spending.
A Battle Over Billions
The controversy centres on the Federal Reserve's multi-billion dollar renovation project, which has faced criticism for its ballooning budget. Trump, known for his outspoken views on economic matters, lambasted Powell during a recent meeting, accusing the Fed of wasteful spending.
"These costs are completely out of control," Trump reportedly stated. "The American people deserve better stewardship of their tax dollars."
Powell Defends Fed's Position
In response, Powell defended the renovation as necessary for modernising critical financial infrastructure. "The Federal Reserve's headquarters serves as the nerve centre of America's financial system," Powell countered. "These upgrades are essential for maintaining global confidence in our institutions."
Political and Economic Implications
The confrontation highlights ongoing tensions between political figures and independent financial institutions. Observers note that such public disputes could potentially undermine market confidence at a delicate time for the US economy.
- The renovation project was initially budgeted at $2 billion
- Current estimates suggest costs may exceed $3.5 billion
- Completion has been delayed by two years due to design changes
Financial experts remain divided on whether the upgrades justify the expenditure, with some arguing the Fed's ageing infrastructure poses security risks while others decry the project as excessive.
