In a rare and politically charged move, President Donald Trump visited the Federal Reserve headquarters in Washington D.C. to meet with Fed Chair Jerome Powell, intensifying his pressure on the central bank just days before its next policy meeting.
During the visit, Trump criticized the Federal Reserve for its ongoing $2.5 billion renovation project, claiming the real cost had ballooned to $3.1 billion. He described the project as “very luxurious,” citing underground parking, enhanced security, and marble features, suggesting it was a symbol of government waste.
Powell swiftly refuted Trump’s claims, clarifying that the higher figure included unrelated past renovations and that the current budget remained justified due to inflation, security upgrades, and historical preservation requirements. He maintained the Fed’s independence and defended its transparency and budget oversight.
Although Trump joked about firing those responsible for the project, he ultimately stated he would not dismiss Powell “unless there’s fraud.” However, he renewed his call for a dramatic cut in interest rates, pushing for a 3-point reduction to stimulate economic growth and relieve mortgage burdens.
The visit comes at a critical time. The Fed is expected to hold interest rates steady at 4.25% to 4.50%, and Trump’s appearance has sparked debate about political influence on monetary policy. The move also coincides with mounting pressure from Republican lawmakers, who have demanded federal audits and greater accountability over the renovation’s costs.
This marks the first time in two decades that a sitting president has made an official appearance at the Fed—breaking with long-standing norms that discourage direct presidential involvement in central bank affairs.
Sources: Bloomberg, Financial Times, Washington Post, Reuters
