During his visit to the Federal Reserve’s Washington headquarters on Thursday, President Donald Trump publicly critisiced the spiralling renovation costs of two historical buildings and intensified pressure on Fed Chair Jerome Powell to cut the interest rates. Though he has often threatened to dismiss Powell, Trump clarified, “To do so is a big move and I just don’t think it’s necessary,” after touring the $2.5 billion project site on Thursday.
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Renovation Costs Draw Sharp Rebuke
Trump and Powell faced off visually amid the construction site at the Fed’s colossal building overhaul, which reportedly ballooned from $2.5 billion to $3.1 billion. Trump later shared on a social media platform, “it is what it is and, hopefully, it will be finished ASAP. The cost overruns are substantial but, on the positive side, our Country is doing very well and can afford just about anything.” While touring, he confronted Powell with all the figures that he appeared unaware of. “I am not aware of that,” Powell replied, before noting the disputed inclusion of a third building by stating: “You just added in a third building.”
White House budget director Russell Vought and Deputy Chief of Staff James Blair, raised concerns about oversight and possible fraud. Republican Senate Banking Committee Chair Tim Scott, who joined the visit along them, separately demanded explanations regarding the high costs of the project.
Rate Cut Ahead Of Fed Policy Meeting
Trump’s visit comes just days before the Fed’s two-day rate-setting meeting. Policymakers were widely expected to maintain the benchmark rate at 4.25–4.50%, and Trump repeated his demand for a significant rate cut. “I’d love him to lower interest rates,” Trump added as Powell looked on impassively.
Despite previous escalations, Trump reassured that no tension existed between them. “No tension” he insisted, calling their exchange productive as they discussed interest rates.
