TLDR
- Trump urged a 3-point interest rate cut during a rare visit to the Federal Reserve headquarters.
- The Fed’s renovation project has exceeded $2.5B, with Trump claiming costs have reached $3.1B.
- CME FedWatch shows only a 2.6% chance of a rate cut at the upcoming July FOMC meeting.
- Trump confirmed he has no current plans to fire Fed Chair Jerome Powell.
In a rare and closely watched visit, U.S. President Donald Trump toured the Federal Reserve’s headquarters and pressed Chair Jerome Powell to cut interest rates. Trump said lower borrowing costs would support the economy, boost home ownership, and ease federal interest payments. His call came during an ongoing $2.5 billion renovation of the Fed’s historic buildings, which he has recently criticized for cost overruns.
Trump Presses for Sharp Interest Rate Cuts During Fed Tour
During his tour of the Federal Reserve in Washington, D.C., President Trump called for a 300-basis-point interest rate cut. He said the U.S. needed lower rates to compete with global economies. Trump referenced countries like Switzerland, where rates are near zero, saying the U.S. should follow a similar path.
Trump told reporters, “Interest rates need to come down. It would be a big help to the economy.” He also said that inflation has cooled and that lower rates would increase consumer spending and help the housing market. The Fed has kept rates between 4.25% and 4.5% this year.
The president’s comments come ahead of the Federal Open Market Committee’s meeting scheduled next week. According to CME FedWatch data, markets see only a 2.6% chance of a rate cut at that meeting. Trump’s request goes far beyond the usual 0.25% changes typically made by the central bank.
Dispute Over Fed Renovation Costs Sparks Tension
Alongside his push for lower rates, Trump raised concerns about rising renovation costs at the Fed’s headquarters. The project was initially estimated at $2.5 billion, but Trump claimed the total is now closer to $3.1 billion. He questioned the oversight and transparency of the renovation spending.
During the visit, Trump handed Powell a paper showing updated figures. Powell responded by saying the higher figure included costs from a separate renovation completed years earlier. “It’s not new,” Powell said during the exchange. He also stated that the central bank expects long-term savings by consolidating operations into one building.
BREAKING: Trump Blasts Fed Chair Jerome Powell Over Soaring $3.1B Renovation Costs, Pulls Out Receipts in Heated Exchange pic.twitter.com/kMfH6IIGC1
— TaraBull (@TaraBull808) July 24, 2025
Wearing white hard hats, Trump and Powell walked through the construction zone. Reporters noted a visible moment of disagreement when Trump repeated the $3.1 billion figure, and Powell shook his head before clarifying the numbers. Fed staff have explained that inflation, labor costs, and security upgrades have driven the rise in expenses.
Trump Backs Off Firing Powell but Maintains Pressure
Although Trump has strongly criticized Powell in recent weeks, he confirmed he has no plans to fire him. He called such a decision a “big move” and said it is “not necessary” at this time. Trump did say he believes Powell will “do the right thing” by lowering rates soon.
Trump also told reporters, “Everybody knows what the right thing is. Even those who supported higher rates now want them down.” However, the Fed operates independently, and the president does not have the power to directly order interest rate changes.
Federal law states that a Fed chair can only be removed for cause, and no such removal has occurred before.
Powell’s current term runs through May 2026. Recent speculation about his possible resignation has been denied. Meanwhile, other officials, such as San Francisco Fed President Mary Daly, have suggested that two rate cuts in 2025 remain a realistic possibility if inflation remains under control.
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