Podcast Summary: Episode 4657 – President Trump Inspects Fed's Over Spending

Release Date: July 24, 2025

Overview

In Episode 4657 of Bannon's War Room, host Stephen K. Bannon delves into a pivotal moment where former President Donald Trump inspects the Federal Reserve's (Fed) ongoing construction project, scrutinizing significant cost overruns. The episode features an intense discussion among key figures, including President Trump, Fed Chair Jerome Powell, Steve Bannon, Bill Pulte, and James Fishback. The conversation navigates through the intricacies of federal spending, interest rate policies, and legal challenges against the Fed’s transparency.

Key Discussions

1. Inspection of Federal Reserve's Spending

   President Trump leads the discussion by highlighting the Fed's substantial budget overruns related to their construction project. Initial estimates of $2.7 billion have escalated to approximately $3.1 billion.

   • President Trump [00:16-00:27]:

     "So we're taking a look and it looks like it's about 3.1 billion. Went up a little bit or a lot. So the 2.7 is now 3.1."

   • Steve Bannon [00:48-00:56]:

     "Are you including the Martin renovation you just added... That's a third building."

   The dialogue reveals confusion and lack of awareness among Fed officials regarding the sudden increase in projected costs.

2. Expectations of Further Cost Overruns

   The panel discusses the likelihood of additional expenses in the Fed's project.

   • Jerome Powell [01:14-01:16]:

     "Don't expect them."

   • Steve Bannon [01:20]:

     "We're ready for them, but we have a little bit of a reserve that we may use."

   Powell expresses optimism that no further overruns are anticipated, though reserves are in place should they occur.

3. Potential Accountability Measures

   The conversation touches on the possibility of holding Fed officials accountable for budget management.

   • James Fishback [01:26-01:34]:

     "Generally speaking, what would I do? I'd fire him."

   • President Trump [01:37-02:00]:

     "I don't want to get personal. I just would like to see it get finished... it's going to be a real long time because it looks like it's got a long way to go."

   Trump emphasizes a focus on project completion rather than personal accountability, despite acknowledging the significant delays.

4. Economic Policies and Trade Deals

   President Trump shifts the discussion to broader economic achievements, including a major trade deal with Japan aimed at reducing tariffs.

   • President Trump [02:08-02:29]:

     "Japan is putting up $550 billion in order to lower their tariffs... we get a zero tariff in the free trade. We don't pay tariffs... they're going to pay 15% on everything they send into our country."

   He underscores the positive impact of these deals on the U.S. economy and expresses a desire for the Fed to lower interest rates to further stimulate growth.

5. Legal Challenges Against the Federal Reserve

   The episode highlights a significant legal move against the Fed for conducting closed-door meetings, allegedly violating the Sunshine Act.

   • Steve Bannon [17:24-18:50]:

     "We filed a lawsuit against Jerome Powell for breaking federal law by holding the Federal Reserve's rate-setting meetings behind closed doors... there is going to be an emergency hearing on Monday afternoon at 2pm in the D.C. federal Courthouse."

   This legal action aims to enforce transparency within the Fed, advocating for public access to meetings and decision-making processes.

6. Discussion on Natural Interest Rates

   Experts analyze the current interest rate policies, arguing that the Fed's rates are artificially high and detrimental to the economy.

   • Steve Bannon [11:43-13:55]:

     "Inflation has had five consecutive lower than expected, better than expected inflation prints... mortgage originations down 76%... it's at least 100 to 175 basis points too high."

   • James Fishback [07:56-08:01]:

     "I’d fire him."

   The panel contends that lowering interest rates is essential for economic recovery, citing decreased mortgage originations and high inflation as evidence of the Fed's mismanagement.

Notable Quotes with Attributions and Timestamps

• President Trump [00:27]:

  "Yeah, it just came out."

• Steve Bannon [01:20]:

  "We're ready for them, but we have a little bit of a reserve that we may use."

• James Fishback [03:47]:

  "This is the primal scream of a dying regime."

• Jerome Powell [30:42-30:59]:

  "Interest rates need to come down. The country is exploding and there's this one part that could allow it to go even higher, to have relief for families that want get new mortgages."

• Bill Pulte [35:20]:

  "The 3.1 billion is important. There's a cost overrun. [...] The cost overrun is massive. That's their own document."

Legal and Economic Implications

The legal challenge against Jerome Powell and the Federal Reserve represents a significant confrontation between executive influence and independent economic policymaking. By alleging violations of the Sunshine Act, the plaintiffs seek to dismantle the Fed's tradition of confidentiality in monetary policy discussions. This move could set a precedent for increased transparency and accountability within federal economic institutions.

Economically, the episode underscores a contentious debate over interest rate policies. The proponents of lowering rates argue that high-interest rates are stifling economic growth, hindering mortgage accessibility, and exacerbating personal debt issues. Conversely, the Fed maintains that current rates are necessary to control inflation, although this stance is increasingly questioned by critics.

Concluding Remarks

Episode 4657 of Bannon's War Room presents a critical examination of the Federal Reserve's financial management and policy decisions. Through robust discussions and strategic legal actions, the episode highlights the ongoing struggle for economic control and transparency within U.S. financial institutions. The interplay between President Trump's economic initiatives and the Fed's policies reflects broader tensions in national economic strategy, with significant implications for the future of U.S. economy and governance.

Additional Resources

For listeners interested in further details on the legal case against the Federal Reserve or the economic models discussed, visit WarRoom.org for more in-depth analysis and updates.