On Thursday, President Trump visited the Federal Reserve Headquarters, where he toured the ongoing renovations. His administration has been critical of the project for going over budget.
During the visit, Chairman Jerome Powell spoke about economic uncertainty, which reportedly angered Trump, especially regarding the Fed’s decision to keep interest rates steady. It was an unusual sight to see Trump and Powell together, both wearing hard hats as they walked through the construction area.
While Trump has entertained the idea of firing Powell, who has held his position since 2017, he also continues to push for lower interest rates to help make borrowing easier.
Here are five key points from Trump’s visit.
Trump Pressures Powell
For months, Trump has hinted at firing Powell but notably toned this down during his visit, claiming there was “no pressure” for Powell to leave before his term expires in May.
“No pressure. We have. I know his term is coming up soon. I think he’ll do the right thing. It’s what everyone expects,” Trump said, alluding to the need for lower interest rates.
When asked why he wouldn’t just fire Powell if he believed high rates were hurting his family, Trump responded that it wasn’t necessary.
“It’s a big move, and I think he’s going to get it right. It might be a bit late, as the saying goes,” he commented.
Trump mentioned having a couple of replacements in mind when Powell’s term ends. He even nominated Senator Tim Scott, who was present, although Scott clarified he would not leave his Senate position, as he leads the Senate Banking Committee overseeing the Fed.
Trump Claims “No Tension” with Powell
The President declared there was no tension between him and Powell during the visit, despite criticism surfacing regularly.
When asked if he felt nervous, Trump insisted, “I don’t think I’m nervous. I thought we had a productive meeting. No tension at all.” He commented on being more concerned for Scott than for Powell.
Trump and Powell last met at the White House in May, with the White House indicating at that time that Trump hadn’t mentioned wanting to replace him.
Trump on Fed Renovations
During his tour, Trump downplayed the renovation’s costs, suggesting they wouldn’t be reason enough to remove Powell.
“I want to see it finished; I don’t want to categorize it like that,” he remarked when asked if he considered the project a serious issue. “It’s complicated but should have been straightforward.”
Trump noted that if the project manager had exceeded the budget, he would typically fire that person.
“That’s generally what I do: fire someone,” he stated.
He expressed a wish to see the renovations completed, remarking, “It’s unfortunate it started, but now that it has, it needs to finish.”
Last week, he hinted that cost overruns could lead him to replace Powell after White House officials acknowledged exceeding the renovation budget.
Powell Challenges Cost Estimates
One notable interaction was when Powell challenged Trump’s renovation cost estimates, saying the figures the President referenced were from older projects.
“It looks like about $3.1 billion. It’s increased from the earlier estimate of $2.5 billion,” Trump mentioned.
Powell disagreed, stating, “I don’t know that, Mr. President. I haven’t been informed of that from anyone at the Fed.”
Trump then pulled out a document from his suit while Powell adjusted his glasses to inspect the details, revealing it contained costs relating to a different building completed five years earlier.
“It’s all part of the overall project,” Trump replied.
“It’s not new,” Powell responded.
Trump Worries About Interest Rates, Not Renovation Costs
Ultimately, Trump expressed that his primary concern revolves around the failure to lower interest rates, conveying to reporters that the renovation costs are secondary.
“We looked around… saw what we needed to and, most importantly, they need to complete it, but lower interest rates are key,” Trump said.
“We want to cut rates and finish the Fed building. We had a good tour with the chairman. Maybe Tim and I will talk with you later,” he added.
Scott chimed in, “It’s too expensive. Americans deserve better as first-time buyers.”
After the tour, Trump reflected on the renovation’s costs, stating, “The overruns are considerable, but, on the bright side, our country is doing well enough to manage this expense.”
Trump expressed nostalgia about being back at a construction site, recalling his past as a real estate developer before entering politics.
He then hesitated when asked about the renovation’s execution, calling it a “gorgeous situation,” but added he would have approached it differently if he were in charge.
“There’s always a Monday morning quarterback, and I don’t want to be that. I just want to help get it finished,” he remarked.
Early on in the visit, as they laughed together, a reporter asked if he had any advice for Powell amidst his criticism.
“I want him to lower the interest rates. What else can I say?” Trump replied.
