President Trump’s fight against Federal Reserve Chair Jerome Powell has taken on a new dimension, with an overhaul of the central bank’s headquarters at the center of a growing White House pressure campaign.

Top White House officials have zeroed in on a $2.5 billion renovation of the Federal Reserve’s Washington, D.C., offices. Powell has asked the inspector general of the central bank to review the renovations, a source confirmed this week.

Trump and his allies attacking Powell has been a storyline for months as the president expresses frustration that the Fed has not lowered interest rates to his liking. The Fed has long maintained independence from the White House to avoid political pressures influencing monetary policy.

Trump has repeatedly stopped short of saying he would fire Powell, something he may not even have the legal authority to do.

But the administration’s use of the renovations as a cudgel has raised questions about whether Trump’s allies may try to oust Powell for cause before his term as chair expires next May.

“The administration sees Powell as a weakness, and the problem is the midterms are coming,” said one source close to the White House.

Russell Vought, director of the Office of Management and Budget (OMB), wrote to Powell last week accusing the Fed chair of mismanaging the central bank. He cited multiple discrepancies between Powell’s testimony to Congress about the renovations and apparent changes to the overhaul.

The OMB instructs agencies to consult with the National Capital Planning Commission on renovations, and Vought pressed Powell on whether the project is in accordance with the same plan the commission approved in 2021.

Trump recently appointed another top White House official to the National Capital Planning Commission: deputy chief of staff James Blair. The appointment of a staunch loyalist could give Trump another lever to pressure Powell over the renovation issue.

Blair has over the past week posted multiple times on social media critiquing Powell and vowing to press the Fed on the renovations.

“At a time when the Fed is running an operating deficit, maintains high interest rates, and is receiving significant public scrutiny, one has to wonder whether the so-called ‘Taj Mahal near the National Mall’ project is in the best interests of the board & the public it serves,” Blair posted on the social platform X.

In another post, Blair shared a headline that read, “Is Trump Using an Obscure Architecture Board to Fire Jerome Powell?”

In an attempt to quell concerns around the project, the Fed this week posted a Q&A to its webpage addressing some of the details of the project and arguing the renovations will “reduce costs over time by allowing the Board to consolidate most of its operations.”

The Fed cited “various factors” for the increased costs, including differences over time between estimates and actual costs and unexpected hiccups such as toxic contamination in soil and more asbestos than anticipated.

While some in the White House ramp up the pressure on Powell, there are other indications Trump and his team may just let the Fed chair’s term run its course for its final 10 months.

The president has repeatedly said he does not plan to fire Powell, a move that would rattle financial markets and likely lead to a court challenge. Powell has said he will not step down even if the president asks him to.

Treasury Department Secretary Scott Bessent told Bloomberg Television on Tuesday there is a “formal process that’s already starting” to identify a nominee to replace Powell. Bessent’s name has been among those floated as potential replacements.

Fed officials kicked off the year expecting to continue cutting interest rates as inflation drifted back toward its ideal annual level of 2 percent. But the bank has held off through the first half of 2025 amid the uncertainty driven by Trump’s tariff plans.

Trump on Tuesday reiterated his call for Powell to cut interest rates in the wake of government data that showed inflation ticked up in June.

The president told reporters he last spoke with Powell when the two met at the White House in late May.

“I told him he’s doing a very bad job. He’s way late,” Trump said of the meeting. “That’s why I call him ‘too late.’”

Foreign leaders amp up the flattery

As foreign leaders sit down for meetings with Trump, they are turning to a well-worn tactic to get on the president’s good side: ramping up the flattery.

Israeli Prime Minister Benjamin Netanyahu last week arrived at the White House carrying a letter as evidence he had nominated Trump for the Nobel Peace Prize for his efforts in brokering a ceasefire between Israel and Iran.

“Wow. Thank you very much. Coming from you in particular, this is very meaningful,” Trump said as he took the letter.

When Trump hosted a group of African leaders at the White House, they similarly sought to lay on the compliments about the president and his politics.

Multiple leaders in attendance voiced support for Trump to receive the Nobel Peace Prize. Senegal’s president, Bassirou Diomaye Faye, heaped praise on Trump for his golf skills and suggested the qualities that make a strong player on the course “also make for a great leader.”

“This is great. We could do this all day long,” Trump said at one point as he soaked up the praise.

When South Africa’s president visited the White House last month, he brought multiple prominent South African golf stars in a bid to win over Trump. That meeting went less smoothly, with Trump attacking the visiting delegation over disputed claims of “white genocide.”

Other leaders have had more success. 

NATO Secretary-General Mark Rutte has shown an ability to work with Trump, including by playing up the flattery. During a NATO summit last month, Rutte likened Trump to a “daddy”-like figure who was scolding other alliance members to contribute more.

While Rutte disputed the characterization that he referred to Trump as “daddy,” the president this week announced additional measures to provide weapons to Ukraine and threatened tariffs on Russia if it did not agree to a ceasefire in the next 50 days. Rutte, in an interview on “Special Report” on Fox News, called Trump’s actions “significant.”