Trump pressures Powell at rare Fed visit, backs off firing threat
US President Donald Trump passes a document to Federal Reserve Chair Jerome Powell during a tour of the Federal Reserve Board building, which is currently undergoing renovations, US, July 24, 2025. Photograph: (Reuters)
The visit comes as Donald Trump faces political heat over unrelated matters, including controversy over undisclosed files tied to Jeffrey Epstein. Still, the Fed episode is part of a broader strategy: pressure Jerome Powell to cut rates.
In an extraordinary show of public pressure, President Donald Trump visited the Federal Reserve’s headquarters on July 24 to tour its ongoing renovation and to directly confront Chair Jerome Powell over monetary policy and construction cost overruns. While reiterating his demand for steep interest rate cuts, Trump also dialed back recent threats to fire Powell, whom he has repeatedly criticised. The visit marks only the fourth time a sitting president has visited the Fed since its founding in 1913, and the first in modern history to coincide with overt calls to change monetary policy.
Trump demands aggressive rate cuts
Standing beside Powell in white hard hats amid the construction zone, Trump renewed his call for the Fed to slash interest rates by at least three percentage points. “I’d love him to lower interest rates,” Trump said. “It would save our country hundreds of billions of dollars.” Trump’s visit comes ahead of next week’s Federal Open Market Committee meeting, where officials are widely expected to keep the benchmark rate steady at 4.25-4.50 per cent. Markets anticipate a possible cut in September.
Powell, nominated by Trump in 2017, has maintained that decisions are guided by data and the Fed’s dual mandate of price stability and full employment. While Trump has repeatedly branded him a “numbskull” and “Too Late,” Powell has so far avoided responding.
Sparring over renovation costs
The president also took aim at the Fed’s $2.5 billion renovation of two historic buildings. Trump claimed the cost had ballooned to $3.1 billion and handed Powell a paper with what he called updated estimates. Powell corrected him, noting that the figure included an entirely separate building renovated five years earlier. “That’s a third building,” Powell said, shaking his head. “It was built five years ago.”
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Fed staff later clarified that rising costs were partly due to blast-resistant windows, tariffs, and inflation in labour and materials. Trump joked that on his own projects, a cost overrun of that size would “get someone fired.” But he also stated, “I don’t want to be personal,” adding, “I just would like to see it get finished.”
Backs off firing threat, but keeps up pressure
Despite previous suggestions that Powell should resign or be removed, Trump struck a more conciliatory tone this time. “To do that is a big move, and I just don’t think it’s necessary,” he said. “I believe he’s going to do the right thing.” Trump’s Truth Social post later that day was similarly mixed. He called the renovation “a disaster” but said, “Our country is doing very well and can afford just about anything—even the cost of this building!”
The visit comes as Trump faces political heat over unrelated matters, including controversy over undisclosed files tied to Jeffrey Epstein. Still, the Fed episode is part of a broader strategy: pressure Powell to cut rates.
(With inputs from agencies)