President Donald Trump on Tuesday told reporters that the $2.5 billion renovation of the Federal Reserve's Washington headquarters shows that Chair Jerome Powell is either "incompetent" or "crooked."

Trump, pointing to the ballooning cost of the long-running project, argued the overrun raises serious questions about Powell's stewardship at the central bank.

"He's billions of dollars over budget," Trump said while leaving the White House to board Marine One.

"So he either is incompetent or he's crooked. I don't know what he is, but he does. Certainly he doesn't do a very good job."

Trump also renewed pressure on the Fed to cut interest rates, saying the economy is strengthening, and inflation is under control.

In a Truth Social post earlier, Trump touted "Great (LOW!) Inflation numbers" and said Powell should move aggressively.

"That means that Jerome 'Too Late' Powell should cut interest rates, MEANINGFULLY!!!" Trump wrote. "If he doesn't he will just continue to be, 'TOO LATE!' ALSO OUT, GREAT GROWTH NUMBERS. Thank you MISTER TARIFF!"

In his remarks to reporters, Trump suggested falling rates and rising growth should give Powell "the chance to give us a nice, beautiful big rate cut," adding that "the country is doing well" and he planned to address the economy later in the day in a major speech before the Detroit Economic Club.

Economic data released Tuesday offered mixed ammunition in the debate.

The Consumer Price Index rose 0.3% in December, with inflation up 2.7% over the past 12 months — matching the prior month's gain.

Core inflation, which strips out food and energy, increased 0.2% in December and rose 2.6% year over year, slightly cooler than forecasts.

Inflation data had been distorted in prior months by the effects of a 43-day government shutdown, while Trump's import tariffs have pushed some goods' prices higher, keeping affordability a political flash point.

Even so, markets broadly expect the Federal Reserve to hold rates steady at its next meeting, with the benchmark overnight rate expected to remain in the 3.50%-3.75% range at the Jan. 27-28 gathering.

Trump and many conservatives argue the Fed has kept borrowing costs too high for too long, squeezing families and small businesses while Washington insiders face few consequences for waste and mismanagement.

Trump's criticism of the renovation project underscores a broader message he has emphasized for years: Federal bureaucracies — including powerful, unelected institutions like the Fed — should be held accountable like everyone else.

With Powell's term nearing its end and tensions escalating between the White House and the central bank, Tuesday's flare-up signals the fight over rates, inflation, and accountability in Washington is far from over.

Reuters contributed to this report.

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