President Donald Trump sharply criticized Federal Reserve Chairman Jerome Powell, accusing him of mismanaging monetary policy and overseeing what Trump described as an outrageously expensive renovation of the Federal Reserve’s headquarters. The remarks underscore Trump’s long-running frustration with the Fed’s leadership amid debates over interest rates, inflation, and government accountability.

“We have a bad Fed Chairman,” Trump said. “He’s bad because his interest rates are too high.” Trump argued that the Fed has failed to adjust policy despite reports showing easing inflation and continued economic growth, contending that elevated rates are unnecessarily burdening businesses, homeowners, and consumers.

Trump also took aim at a major renovation project at the Federal Reserve’s Washington, D.C. headquarters, calling it “the most expensive construction job in history,” despite being a renovation rather than a new build. The project, which involves two historic buildings, has reportedly ballooned to an estimated $2.5 billion, far exceeding its original $1.9 billion budget.

According to public disclosures, costs have risen due to unforeseen structural issues, including the removal of lead paint and asbestos, as well as upgrades required to preserve the historic nature of the buildings. The escalating price tag has drawn increased scrutiny, particularly as Americans face higher borrowing costs and persistent economic pressures.

The renovation has also become the subject of a Department of Justice probe initiated in early 2026, further intensifying political and public attention. Critics argue that the timing and scale of the spending raise serious questions about oversight and priorities within the Federal Reserve.

Trump’s comments reflect a broader critique of unelected bureaucratic power and spending, a central theme of his economic message. By linking high interest rates with what he portrays as fiscal excess at the Fed, Trump is framing the issue as both an economic and accountability failure — one that he argues directly affects everyday Americans.

As debates over monetary policy continue, Trump’s remarks are likely to amplify calls for greater transparency at the Federal Reserve and renewed pressure on its leadership to align policy decisions with economic realities on the ground.