Trump visits Fed, won’t fire Powell, seeks rate cuts

In Short:
– Trump won’t dismiss Powell and wants lower interest rates despite dissatisfaction with his performance.
– He criticised the Fed’s renovation, claiming costs may reach $3.1 billion, which Powell denied.

U.S. President Donald Trump stated he would not dismiss Federal Reserve Chair Jerome Powell during a visit to the Fed’s headquarters. According to Reuters, Trump reiterated his desire for lower interest rates despite previously expressing dissatisfaction with Powell’s performance.

During the visit, Trump criticised the ongoing $2.5 billion renovation of two Fed buildings, which has raised concerns about rising costs and mismanagement by the Fed. Trump alleged the renovation costs may now reach $3.1 billion, though Powell denied awareness of this figure.

Trump maintained that his priority remains lowering borrowing costs. He downplayed any tensions with Powell, asserting their discussions were productive. The renovation project, which began in 2022, is scheduled for completion by 2027.

Cost Concerns

Senate Banking Committee Chair Tim Scott joined Trump during the visit and has previously questioned the increasing costs of the renovation. Market responses were muted, with bond yields rising following positive jobless claims data. Trump’s criticisms have previously disrupted financial markets by threatening the Fed’s reputation for independence.