Trump and Powell bicker over Fed building renovations as president ratchets up pressure campaign

WASHINGTON (AP) — After months of criticizing Federal Reserve Chair Jerome Powell, President Donald Trump took the fight to the Fed’s front door on Thursday, publicly scorning the central bank chief over the ballooning costs of a long-planned building project. Powell pushed back, challenging the president’s latest price tag as incorrect.

Wearing hard hats and grim faces, standing in the middle of the construction project, Trump and Powell addressed the assembled TV cameras. Trump charged that the renovation would cost $3.1 billion, much higher than the Fed's $2.5 billion figure. Powell, standing next to him, shook his head.

The Fed chair, after looking at a paper presented to him by Trump, said the president was including the cost of renovating a separate Fed building, known as the Martin building, that was finished five years ago.

The visit represented a significant ratcheting up of the president's pressure on Powell to lower borrowing costs, which Trump says would accelerate economic growth and reduce the government's interest payments. Presidents rarely visit the Fed's offices, though they are just a few blocks from the White House, an example of the central bank's independence from day-to-day politics.

“We have to get the interest rates down,” Trump said later after a short tour, addressing the cameras this time without Powell. “People are pretty much unable to buy houses.”

Trump is likely to be disappointed next week, however, when Fed officials will meet to decide its next steps on interest rates. Powell and other officials have signaled they will likely keep their key rate unchanged at about 4.3%. However, economists and Wall Street investors expect the Fed may start cutting rates in September.

The Federal Reserve sets a short-term interest rate that influences other borrowing costs, such as mortgages, auto loans and credit card rates. Yet the Fed doesn’t directly control those other rates, which are ultimately set in financial markets. Last September, when the Fed cut its rate a half-point, mortgage rates actually rose in response.

Trump did step back a bit from some of his recent threats to fire Powell before his term ends May 26. Asked if the rising costs of the Fed's renovation, estimated in 2022 to cost $1.9 billion, was a “fireable offense,” Trump said, “I don't want to put this in that category.”

“To do that is a big move, and I don't think that's necessary,” Trump added. "I just want to see one thing happen, very simple: Interest rates come down.”

And on his Truth Social site, Trump said, “The cost overruns are substantial but, on the positive side, our Country is doing very well and can afford just about anything — Even the cost of this building!”

The Fed allowed reporters to tour the building before the visit by Trump, who, in his real estate career, bragged about his own lavish spending on architectural accoutrements that gave a Versailles-like golden flair to his buildings.

On Thursday, reporters wound through cement mixers, front loaders and plastic pipes as they got a close-up view of the active construction site that encompasses the Fed's historic headquarters, known as the Marriner S. Eccles building, and a second building across 20th Street in Washington.

Fed staff, who declined to be identified, said that greater security requirements, rising materials costs and tariffs, and the need to comply with historic preservation measures drove up the cost of the project, which was budgeted in 2022 at $1.9 billion.

Trump in 2018 imposed a 25% duty on steel and 10% on aluminum. He increased them this year to 50%. Steel prices are up about 60% since the plans were approved, while construction materials costs overall are up about 50%, according to government data.

The staff pointed out new blast-resistant windows and seismic walls that were needed to comply with modern building codes and security standards set out by the Department of Homeland Security. The Fed has to build with the highest level of security in mind, Fed staff said, including something called “progressive collapse,” in which only parts of the building would fall if hit with explosives.

Sensitivity to the president's pending visit among Fed staff was high during the tour. Reporters were ushered into a small room outside the Fed's boardroom, where 19 officials meet eight times a year to decide whether to change short-term interest rates. The room, which will have a security booth, is oval-shaped, and someone had written “oval office” on plywood walls.

The Fed staff downplayed the inscription as a joke. When reporters returned to the room later, it had been painted over.

During the tour, Fed staff also showed the elevator shaft that congressional critics have said is for “VIPs” only. Powell has since said it will be open to all Fed staff. The renovation includes an 18-inch (45-cm) extension so the elevator reaches a slightly elevated area that is now accessible only by steps or a ramp. A planning document that said the elevator will only be for the Fed's seven governors was erroneous and later amended, staff said.

Plans for the renovation were first approved by the Fed's governing board in 2017. The project then wended its way through several local commissions for approval, at least one of which, the Commission for Fine Arts, included several Trump appointees. The commission pushed for more marble in the second of the two buildings the Fed is renovating, known as 1951 Constitution Avenue, specifically in a mostly glass extension that some of Trump's appointees derided as a “glass box.”

Fed staff also pointed to the complication of historic renovations — both buildings have significant preservation needs. Constructing a new building on an empty site would have been cheaper, they said.

As one example, the staff pointed reporters to where they had excavated beneath the Eccles building to add a floor of mechanical rooms, storage space and some offices. The Fed staff acknowledged such structural additions underground are expensive, but said it was done to avoid adding HVAC equipment and other mechanics on the roof, which is historic.

Trump, who said after his tour that “it feels very good to be back on a construction site,” added that opening up a basement is “the most expensive place to build.”

The Fed has previously attributed much of the project's cost to underground construction. It is also adding three underground levels of parking for its second building. Initially the central bank proposed building more above ground, but ran into Washington, D.C.'s height restrictions, forcing more underground construction.

Follow the AP's coverage of the Federal Reserve System at https://apnews.com/hub/federal-reserve-system.

President Donald Trump speaks during a visit to the Federal Reserve, Thursday, July 24, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)

Federal Reserve Chairman Jerome Powell, from left, President Donald Trump and Sen. Tim Scott, R-S.C., visit the Federal Reserve, Thursday, July 24, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)

Sen. Tim Scott, R-S.C., from foreground left, President Donald Trump and Federal Reserve Chairman Jerome Powell visit the Federal Reserve, joined by Russell Vought, director of the Office of Management and Budget, in background third from right, Thursday, July 24, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)

President Donald Trump listens as Federal Reserve Chairman Jerome Powell speaks during a visit to the Federal Reserve, Thursday, July 24, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)

The front facade of the 1951 Constitution Avenue Building is visible as renovations continue on the Federal Reserve, Thursday, July 24, 2025, in Washington. (Andrew Harnik/Pool Photo via AP)

A plaque, discussing the historical significance of the space is visible near a worker in the main two-story board room as renovations continue on the Federal Reserve, Thursday, July 24, 2025, in Washington. (Andrew Harnik/Pool Photo via AP)

A worker is seen in the Marriner S. Eccles Federal Reserve Board Building as renovations continue on the Federal Reserve, Thursday, July 24, 2025, in Washington. (Andrew Harnik/Pool Photo via AP)

The front facade of the Marriner S. Eccles Federal Reserve Board Building is visible as renovations continue on the Federal Reserve, Thursday, July 24, 2025, in Washington. (Andrew Harnik/Pool Photo via AP)

An excavator works on the ground floor of the 1951 Constitution Avenue Building as renovations continue on the Federal Reserve, Thursday, July 24, 2025, in Washington. (Andrew Harnik/Pool Photo via AP)

The Federal Reserve is pictured as renovations continue, Thursday, July 24, 2025, in Washington. (Andrew Harnik/Pool Photo via AP)

The grand atrium of the Federal Reserve is pictured, Thursday, July 24, 2025, in Washington. (Andrew Harnik/Pool Photo via AP)

The grand atrium is visible as renovations continue on the Federal Reserve, Thursday, July 24, 2025, in Washington. (Andrew Harnik/Pool Photo via AP)

Original detail work along the ceiling is visible in the main two-story board room as renovations continue on the Federal Reserve, Thursday, July 24, 2025, in Washington. (Andrew Harnik/Pool Photo via AP)

An oval reception area at the entrance to a main two-story board room that has jokingly been referred to as the "Oval Office" by construction workers is pictured as renovations continue of the Federal Reserve, Thursday, July 24, 2025, in Washington. (Andrew Harnik/Pool Photo via AP)

A worker is visible in the window of the 1951 Constitution Avenue Building as a renovations continue on the Federal Reserve, Thursday, July 24, 2025, in Washington. (Andrew Harnik/Pool Photo via AP)

President Donald Trump speaks during an AI summit at the Andrew W. Mellon Auditorium, Wednesday, July 23, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)

Federal Reserve Board Chairman Jerome Powell speaks during Federal Reserve Integrated Review of the Capital Framework for Large Banks Conference at the Federal Reserve in Washington, Tuesday, July 22, 2025. (AP Photo/Mark Schiefelbein)

FILE - The sculpture of an eagle looks out from behind protective construction wrapping on the facade as the Federal Reserve Board Building undergoes both interior and exterior renovations, in Washington, Monday, Oct. 23, 2023. (AP Photo/J. Scott Applewhite, File)

WASHINGTON (AP) — Venezuelan opposition leader María Corina Machado said she presented her Nobel Peace Prize medal to President Donald Trump at the White House on Thursday even as he has questioned her credibility to take over her country after the U.S. ousted then-President Nicolás Maduro.

The Nobel Institute has said Machado could not give her prize to Trump, an honor that he has coveted. Even if it the gesture proves to be purely symbolic, it was extraordinary given that Trump has effectively sidelined Machado, who has long been the face of resistance in Venezuela. He has signaled his willingness to work with acting President Delcy Rodríguez, who had been Maduro’s second in command.

“I presented the president of the United States the medal, the Nobel Peace Prize," Machado told reporters after leaving the White House and heading to Capitol Hill. She said she had done so "as a recognition for his unique commitment with our freedom.”

Trump confirmed later on social media that Machado had left the medal for him to keep, and he said it was an honor to meet her.

“She is a wonderful woman who has been through so much. María presented me with her Nobel Peace Prize for the work I have done,” Trump said in his post. “Such a wonderful gesture of mutual respect. Thank you María!”

The White House later posted a photo of Machado standing next to Trump in the Oval Office as he holds the medal in a large frame. A text in the frame reads, "Presented as a personal symbol of gratitude on behalf of the Venezuelan people in recognition of President Trump’s principled and decisive action to secure a free Venezuela.”

Trump has raised doubts about his stated commitment to backing democratic rule in Venezuela, giving no timetable on when elections might be held. Machado indicated that he had provided few specifics on that front during their discussion.

She did not provide more information on what was said.

After the closed-door meeting, Machado greeted dozens of cheering supporters waiting for her near the White House gates, stopping to hug many.

“We can count on President Trump,” she told them without elaborating, prompting some to briefly chant, “Thank you, Trump.”

Before her visit to Washington, Machado had not been seen in public since she traveled last month to Norway, where her daughter received the peace prize on her behalf. She had spent 11 months in hiding in Venezuela before she appeared in Norway after the ceremony.

The jubilant scene after her meeting with Trump stood in contrast to political realities in Venezuela. Rodríguez remains in charge of day-to-day government operations, along with others in Maduro’s inner circle. In her first state of the union speech Thursday, the interim president promoted the resumption of diplomatic ties between the historic adversaries and advocated for opening the state-run oil industry to more foreign investment after Trump pledged to seize control of Venezuelan crude sales.

Trump has said it would be difficult for Machado to lead because she “doesn’t have the support within or the respect within the country.” Her party is widely believed to have won 2024 elections rejected by Maduro.

White House press secretary Karoline Leavitt called Machado “a remarkable and brave voice” but also said the meeting didn’t mean Trump’s opinion of her changed, calling it “a realistic assessment.”

Leavitt told reporters that Trump supported new Venezuelan elections “when the time is right” but did not say when he thought that might be.

Leavitt said Machado had sought the face-to-face meeting without setting expectations for what would occur. She spent about two and a half hours at the White House.

“I don’t think he needs to hear anything from Ms. Machado," the press secretary said while the meeting was still going on, other than to have a ”frank and positive discussion about what’s taking place in Venezuela.”

After leaving the White House, Machado went on to a closed-door meeting with a bipartisan group of senators.

Sen. Chris Murphy, D-Conn., said Machado told them that “if there’s not some progress, real progress towards a transition in power, and/or elections in the next several months, we should all be worried.”

“She reminded us that Delcy Rodríguez is, in many ways, worse than Maduro,” he added.

Asked if Machado had heard any commitment from the White House on holding elections in Venezuela, Murphy said, “No, I don’t think she got any commitment from them."

Sen. Bernie Moreno, an Ohio Republican, was exultant following the meeting, saying Machado "delivered a message that loud and clear: What President Trump did was the most important, significant event in Latin America. That getting rid of Maduro was absolutely essential.”

Machado's Washington stop coincided with U.S. forces in the Caribbean Sea seizing another sanctioned oil tanker that the Trump administration says had ties to Venezuela. It is part of a broader U.S. effort to take control of the South American country’s oil after U.S. forces captured Maduro and his wife less than two weeks ago at a heavily guarded compound in the Venezuelan capital of Caracas and brought them to New York to stand trial on drug trafficking charges.

Leavitt said Venezuela's interim authorities have been fully cooperating with the Trump administration and noted that Rodríguez's government said it planned to release more prisoners detained under Maduro. Among those released were five Americans this week.

Trump said Wednesday that he had a “great conversation” with Rodríguez, their first since Maduro was ousted.

Just hours after Maduro's capture, Trump said of Machado that “it would be very tough for her to be the leader.” Machado had steered a careful course to avoid offending Trump, notably after winning the peace prize, and had sought to cultivate relationships with him and key administration voices like Secretary of State Marco Rubio.

The industrial engineer and daughter of a steel magnate, Machado began challenging the ruling party in 2004, when the nongovernmental organization she co-founded, Súmate, promoted a referendum to recall then-President Hugo Chávez. The initiative failed, and Machado and other Súmate executives were charged with conspiracy.

A year later, she drew the anger of Chávez and his allies again for traveling to Washington to meet President George W. Bush, whom Chávez considered an adversary.

Almost two decades later, she marshaled millions of Venezuelans to reject Chávez’s successor, Maduro, for another term in the 2024 election. But ruling party-loyal electoral authorities declared him the winner despite ample credible evidence to the contrary. Ensuing anti-government protests ended in a brutal crackdown.

Garcia Cano reported from Caracas, Venezuela. Associated Press writers Lisa Mascaro, Stephen Groves, Michelle L. Price and Matthew Lee in Washington, and Megan Janetsky in Mexico City contributed to this report.

Venezuelan opposition leader Maria Corina Machado is welcomed at the Capitol before a meeting with senators, from left, Sen. John Curtis, R-Utah, Sen. Ruben Gallego, D-Ariz., Sen. Dick Durbin, D-Ill., Sen. Alex Padilla, D-Calif., and Sen. Chris Murphy, D-Conn., as the Nobel Peace Prize recipient visits American leaders two weeks after President Donald Trump toppled Venezuelan president Nicolas Maduro in a stunning military raid, at the Capitol in Washington, Thursday, Jan. 15, 2026. (AP Photo/J. Scott Applewhite)

Venezuelan opposition leader María Corina Machado, center, leaves the Capitol, Thursday, Jan. 15, 2026, in Washington. (AP Photo/Allison Robbert)

Venezuelan opposition leader Maria Corina Machado, center, is welcomed by Sen. Dick Durbin, D-Ill., left, Sen. Ruben Gallego, D-Ariz., far left, and Sen. Alex Padilla, D-Calif., right, as the Nobel Peace Prize recipient visits American leaders at the Capitol in Washington, Thursday, Jan. 15, 2026. (AP Photo/J. Scott Applewhite)

Venezuelan opposition leader María Corina Machado gestures to supporters on Pennsylvania Avenue as she leaves the White House after meeting with President Donald Trump Thursday, Jan. 15, 2026, in Washington. (AP Photo/Pablo Martinez Monsivais)

Venezuelan opposition leader María Corina Machado waves to supporters on Pennsylvania Avenue as she leaves the White House after meeting with President Donald Trump Thursday, Jan. 15, 2026, in Washington. (AP Photo/Pablo Martinez Monsivais)

Venezuelan opposition leader María Corina Machado smiles on Pennsylvania Avenue as she leaves the White House after meeting with President Donald Trump Thursday, Jan. 15, 2026, in Washington. (AP Photo/Pablo Martinez Monsivais)

Venezuelan opposition leader María Corina Machado waves to supporters on Pennsylvania Avenue as she leaves the White House after meeting with President Donald Trump Thursday, Jan. 15, 2026, in Washington. (AP Photo/Pablo Martinez Monsivais)

FILE - U.S. President George Bush, right, meets with Maria Corina Machado, executive director of Sumate, a non-governmental organization that defends Venezuelan citizens' political rights, in the Oval Office of the White House, Washington, May 31, 2005. (AP Photo/Charles Dharapak, File)

FILE - Opposition leader Maria Corina Machado gestures to supporters during a protest against President Nicolas Maduro the day before his inauguration for a third term, in Caracas, Venezuela, Thursday, Jan. 9, 2025. (AP Photo/Ariana Cubillos, file)