WASHINGTON (AP) — President Donald Trump rattled off a number to shame Federal Reserve Chair Jerome Powell about the renovation costs of the Fed's headquarters — and America's central banker dared to correct him. Live on video.
The exchange occurred Thursday in the plywood-sheathed headquarters of the Fed that are still under construction. Both men wore white hard hats and dark suits. Trump spoke with utter certainty, while Powell skeptically cocked his eyebrows.
Trump claimed the renovation project was over budget at a $3.1 billion price tag, while Powell pushed back and said the president was including an extra building that had been renovated five years ago. The Fed has maintained that renovation costs are $2.5 billion, an increase from $1.9 billion.
“It looks like it’s about $3.1 billion, went up a little bit or a lot,” said Trump.
Powell shook his head in disagreement. “I’m not aware of that, Mr. President,” he responded.
“It just came out,” said Trump, pulling a folded piece of paper from his suit coat’s pocket.
“I haven’t heard that from anybody at the Fed,” Powell said.
“It just came out,” Trump repeated.
After some back and forth, Powell put on his glasses, stared at the numbers on the paper from Trump and asked, “This came from us?”
“Yes,” Trump said.
“Are you including the Martin renovation?” Powell said. “You just added in a third building is what that is. That’s a third building.”
“It’s a building that’s being built,” Trump said.
“No, it was built five years ago,” Powell said.
Trump ended his tour afterward by saying he wanted the renovation to be completed and Powell to aggressively cut benchmark interest rates. The Fed chair has refrained from responding to Trump's taunts on social media, saying the Fed can afford to be patient to monitor the impact of the president's tariffs on inflation.
The exchange followed months of criticism by Trump of Powell as being “Too Late” on rate cuts and an accompanying pressure campaign to get the central bank head to step down.
White House deputy chief of staff James Blair later said that Powell was “splitting hairs" on the renovation costs, though in this case it would be a $600 million hair about a building that Trump thought was still under construction.
“There’s no way around it," Blair said. "The cost overrun is massive.”
President Donald Trump speaks as Federal Reserve Chairman Jerome Powell listens during a visit to the Federal Reserve, Thursday, July 24, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)
Federal Reserve Chairman Jerome Powell looks over a document of cost figures as President Donald Trump visits the Federal Reserve, Thursday, July 24, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)
Federal Reserve Chairman Jerome Powell looks over a document of cost figures as President Donald Trump watches during a visit to the Federal Reserve, Thursday, July 24, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)
A federal appeals panel on Thursday reversed a lower court decision that released former Columbia University graduate student Mahmoud Khalil from an immigration jail, bringing the government one step closer to detaining and ultimately deporting the Palestinian activist.
The three-judge panel of the 3rd U.S. Circuit Court of Appeals didn’t decide the key issue in Khalil’s case: whether the Trump administration’s effort to throw Khalil out of the U.S. over his campus activism and criticism of Israel is unconstitutional.
But in its 2-1 decision, the panel ruled a federal judge in New Jersey didn’t have jurisdiction to decide the matter at this time. Federal law requires the case to fully move through the immigration courts first, before Khalil can challenge the decision, they wrote.
“That scheme ensures that petitioners get just one bite at the apple — not zero or two,” the panel wrote. “But it also means that some petitioners, like Khalil, will have to wait to seek relief for allegedly unlawful government conduct.”
Thursday’s decision marked a major win for the Trump administration’s sweeping campaign to detain and deport noncitizens who joined protests against Israel.
Tricia McLaughlin, a Homeland Security Department spokesperson, called the ruling “a vindication of the rule of law.”
In a statement, she said the department will “work to enforce his lawful removal order” and encouraged Khalil to “self-deport now before he is arrested, deported, and never given a chance to return.”
It was not clear whether the government would seek to detain Khalil, a legal permanent resident, again while his legal challenges continue.
In a statement distributed by the American Civil Liberties Union, Khalil called the appeals ruling “deeply disappointing."
“The door may have been opened for potential re-detainment down the line, but it has not closed our commitment to Palestine and to justice and accountability," he said. "I will continue to fight, through every legal avenue and with every ounce of determination, until my rights, and the rights of others like me, are fully protected.”
Baher Azmy, one of Khalil's lawyers, said the ruling was “contrary to rulings of other federal courts."
“Our legal options are by no means concluded, and we will fight with every available avenue,” he said.
The ACLU said the Trump administration cannot lawfully re-detain Khalil until the order takes formal effect, which won't happen while he can still immediately appeal.
Khalil’s lawyers can request that the panel's decision be set aside and the matter reconsidered by a larger group of judges on the 3rd Circuit Court of Appeals, or they can go to the U.S. Supreme Court.
An outspoken leader of the pro-Palestinian movement at Columbia, Khalil was arrested last March. He then spent three months detained in a Louisiana immigration jail, missing the birth of his first child.
Federal officials have accused Khalil of leading activities “aligned to Hamas,” though they have not presented evidence to support the claim and have not accused him of criminal conduct. They also accused Khalil, 31, of failing to disclose information on his green card application.
The government justified the arrest under a seldom-used statute that allows for the expulsion of noncitizens whose beliefs are deemed to pose a threat to U.S. foreign policy interests.
In June, a federal judge in New Jersey ruled that justification would likely be declared unconstitutional and ordered Khalil released.
President Donald Trump's administration appealed that ruling, arguing the deportation decision should fall to an immigration judge, rather than a federal court.
Khalil has dismissed the allegations as “baseless and ridiculous,” framing his arrest and detention as a “direct consequence of exercising my right to free speech as I advocated for a free Palestine and an end to the genocide in Gaza.”
New York City’s new mayor, Zohran Mamdani, said on social media Thursday that Khalil should remain free.
“Last year’s arrest of Mahmoud Khalil was more than just a chilling act of political repression, it was an attack on all of our constitutional rights,” Mamdani wrote on X. “Now, as the crackdown on pro-Palestinian free speech continues, Mahmoud is being threatened with rearrest. Mahmoud is free — and must remain free.”
Judge Arianna Freeman dissented Thursday, writing that her colleagues were holding Khalil to the wrong legal standard. Khalil, she wrote, is raising “now-or-never claims” that can be handled at the district court level, even though his immigration case isn't complete.
Both judges who ruled against Khalil, Thomas Hardiman and Stephanos Bibas, were Republican appointees. President George W. Bush appointed Hardiman to the 3rd Circuit, while Trump appointed Bibas. President Joe Biden, a Democrat, appointed Freeman.
The two-judge majority rejected Freeman's worry that their decision would leave Khalil with no remedy for unconstitutional immigration detention, even if he later can appeal.
“But our legal system routinely forces petitioners — even those with meritorious claims — to wait to raise their arguments," the judges wrote.
The decision comes as an appeals board in the immigration court system weighs a previous order that found Khalil could be deported to Algeria, where he maintains citizenship through a distant relative, or Syria, where he was born in a refugee camp to a Palestinian family.
His attorneys have said he faces mortal danger if forced to return to either country.
Associated Press writers Larry Neumeister and Anthony Izaguirre contributed to this story.
FILE - Palestinian activist Mahmoud Khalil holds a news conference outside Federal Court on Tuesday, Oct. 21, 2025 in Philadelphia (AP Photo/Matt Rourke, File)
