WASHINGTON (Inshallah) - President Donald Trump sparred publicly with Federal Reserve Chairman Jerome Powell on Thursday during a rare presidential tour of the central bank's headquarters, disagreeing over the costs of ongoing renovations while pressing for lower interest rates.
Trump asserted that construction costs for the renovation of two Fed buildings have topped $3.1 billion, to which Powell replied, "I haven't heard that from anybody." Powell said Trump was including costs for a third government building constructed five years earlier.
The extraordinary public exchange occurred as Trump toured the construction site wearing white hard hats alongside Powell, marking only the fourth presidential visit to the Fed since 1937. When asked what Powell could do to end Trump's criticism, the president responded, "Well, I'd love him to lower interest rates."
Trump's administration has intensified pressure on the Fed chairman in recent weeks, with the president demanding immediate rate cuts while accusing Powell of incompetence. The Fed has held rates steady at 4.25%-4.5% since December after cutting them a full percentage point in late 2024.
Despite earlier threats, Trump suggested he was abandoning consideration of firing Powell, saying "To do that is a big move, and I just don't think it's necessary." Powell's term expires in May 2026.
The visit comes as Trump faces questions about his administration's handling of Jeffrey Epstein files and as his budget chief has questioned the Fed's management of the multibillion-dollar renovation project. Markets expect the Fed to hold rates steady at next week's meeting but potentially cut in September.
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