The Federal Reserve is engaging in a high-stakes public relations battle with the White House over its $2.5 billion renovation project. The central bank, under scrutiny from President Donald Trump and his allies, has hosted media tours of the site in an effort to counter criticism from the administration.
Trump has been critical of Fed Chair Jerome Powell’s handling of interest rates, citing that the central bank has not lowered them this year. However, the tour may be a distraction from the growing scandal surrounding Trump’s relationship with disgraced financier Jeffrey Epstein.
The Fed made a strategic move by hosting media tours beforehand to control the narrative and show that it is proactively addressing concerns about the renovation project. The event revealed details about the project’s upgrades, including blast-resistant windows and shear walls, which are necessary for security purposes.
Despite the transparency effort, administration officials have continued to harshly criticize the Fed. Treasury Secretary Scott Bessent described Trump’s gripes with Powell as “working the refs,” implying that they are trying to force a reconsideration of their policies.
Communications experts say that the tour may be a convenient distraction from other issues facing the administration. The Justice Department’s handling of Epstein files has sparked outrage among some supporters, and CNN recently released new footage shedding light on Trump’s past relationship with the financier.
“This is an effective strategy,” said Anne Marie Malecha, CEO of Dezenhall Resources. “By moving attention away from sensitive issues, the administration can shift public focus onto more favorable topics.”
Source: https://edition.cnn.com/2025/07/24/economy/fed-trump-powell-communications-battle