US President Donald Trump visited the Federal Reserve headquarters on Thursday, just days before a much-awaited meeting where the Fed will decide whether to keep interest rates unchanged. During the visit, Trump reiterated his wish for lower interest rates but said that he would not remove Fed Chair Jerome Powell from his position, even though he has often criticised him.
“To do so is a big move and I just don’t think it’s necessary,” Trump said, who had called the Fed chief a “numbskull” earlier in the week. The US President was speaking to the media after touring a $2.5 billion renovation project involving two buildings at the Federal Reserve’s headquarters in Washington. Trump and Powell walked together both wearing construction helmets.
Trump says ‘no tension’ between him and Powell
The visit turned tense when Trump brought up the rising cost of the Fed renovation, now expected to reach $3.1 billion. Powell looked surprised and said part of that cost included a building that was already finished years ago.
Despite their clear differences, Trump said their talk was “productive” and insisted there was “no tension” between them.
White House questions Fed spending
The White House has been increasingly critical of the Fed’s large renovation project, calling it too expensive and wasteful. Budget officials said costs have jumped by at least $700 million, and Treasury Secretary Scott Bessent called for a deeper look into the Fed’s spending practices, especially in areas not directly tied to monetary policy.
They are also concerned about the Fed’s recent financial losses. The central bank lost over $114 billion in 2023 and another $77.5 billion in 2024, mostly due to how it manages interest rates to fight inflation, a Reuters report said. This is a big change from previous years when the Fed made profits and gave money back to the government.
The Fed, however, said the renovation was long overdue and that it’s the first major upgrade to the buildings in nearly 100 years. They explained that unexpected issues, like removing toxic materials and rising construction costs, caused the price increase.
Trump, while unhappy with the high costs, said he still wants the project finished. But it’s clear he’s keeping pressure on Powell, especially with the Fed meeting just around the corner.