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Wear a good suit. It does not need to be expensive, but it needs to be nicely cut, a good color (dark blue is always a winner) with a skirt or nice dress slacks, and nice (CLEAN) shoes. You can find something inexpensive at places like Dress Barn, Kohls, any mid priced department store. For Federal Govt this is a must.
I would never dress down for a first interview. We are a business casual office. Even dress jeans and a trendy top are appropriate (marketing for a Fortune 100 company), when someone interviews they wear a suit. Entry level even. It makes a good first impression. When you get the job wear dockers etc, but not for the first interview.
My 2 cents after 13 years in corporate America.
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