Trump pushes Powell to reduce interest rates – but says he will not pull the Fed chair
Trump and the president of the Federal Reserve Jerome Powell entered a clumsy confrontation on the camera during the visit of the president of the Fed headquarters.
The visit of President Donald Trump in a major renovation project in the federal reserve building was greeted by the fate of the president of the Federal Reserve, Jerome Powell, seemed uncertain.
During the president’s visit, his friction with Powell was clear because the two seemed to have a tense exchange by speaking to the media, although Trump said that there was “no tension”.
In recent weeks, Trump has expressed his frustration with regard to Powell not to reduce interest rates, the president highlighting the president’s record to take rapid measures on the rates under former president Joe Biden.
President Donald Trump, on the left, and the president of the federal reserve, Jerome Powell, speaks during a visit to the building of the Federal Reserve Board, which is currently being renovated in Washington, DC, on July 24, 2025. (Reuters / Kent Nishimura / Reuters)
Trump insists on `no tension ‘
1. Trump says he doesn’t shoot Powell
When a journalist asked Trump what he would do about a project manager who went beyond the budget – referring to Powell and the Fed renovation – the president said that he would generally dismiss this employee. However, despite his response and his recent public criticism from Powell, Trump said that the dismissal of the president of the Fed was an unnecessary step.
“Doing it is a big decision, and I don’t think it’s necessary. And I think he’s going to do the right thing,” Trump told journalists.
The declaration contrasts strongly with a social post of truth of April in which Trump said: “The dismissal of Powell cannot come quickly enough!” However, a few days after this position, Trump told journalists that he “had no intention of dismissing” Powell.
Whether or not Trump draws Powell, the Fed chair may soon be released, while his mandate ends in May 2026.
Trump compares himself to talking to Powell to “ Talking to a chair ” while praising his own economic predictions
2. Powell and Trump argue on the cost of renovating the Fed building
In a particularly tense moment in front of the media, Trump and Powell did not agree on the estimated cost of the renovation. When Trump said the project had an estimated cost of $ 3.1 billion, Powell shook his head.
“I am not aware of this,” Powell told President.
Trump then released a document to show Powell probably showing the cost he quoted before. The Fed chair read the document on the spot and said the number cited by Trump included a project completed years ago.
The president tried to defend his complaint, saying that the building in question was “part of the global work”.
Powell then retaliated, saying “it’s not new”.
Trump asked Powell if he expected that there were “other additional cost overruns” in the renovations and the president of the Fed said no, but that “we are ready for them”.
Later in the tour, Trump described the renovation of “very expensive project” which “became uncontrollable”, although he added “it happens. It is a shame”.
President Donald Trump, on the left, underlines a document as president of the federal reserve Jerome Powell checks the figures during a visit to the building of the Federal Reserve Board, which is currently being renovated, in Washington, DC, on July 24, 2025 (Reuters / Kent Nishimura / Photo / Reuters file)
A look at the battle of course between Trump and Powell on the Fed policy
3. Trump does not like the project but wants him to be
Trump told journalists from the Fed building that it was “a pity that it was starting”, but that he “would like to see him end”. The end date of the project could be more distant than the president hoped before, as Powell told journalists that the Fed did not expect the renovations to be completed by 2027.
A journalist asked if Trump thought that the cost of renovation was an offense drawn, which he denied.
“I don’t want to put this in this category. It is a very complex thing that could have been simpler,” said Trump.
The celebrity real estate magnate is being compensated, compared the project to the Fed to one of its past offers. Trump said his business had spent $ 200 million to build the old post office hotel – now held by Hilton – and that it was a “much more important project” than what was going on with the Fed.
The president of the federal reserve, Jerome Powell, indicates a finger and speaks while President Donald Trump, next to the American senator Tim Scott (R-SC), examines and listens during a visit to the building of the Federal Reserve Board, which is currently being renovated, in W (Reuters / Kent Nishimura / Reuters)
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4. Trump denies “tension” – but pushes Powell to reduce interest rates
While he denied any “tension” or “pressure” between him and Powell, Trump has put pressure on interest rates several times throughout his visit. The president continued to pressure Powell – whom he appointed during his first term in 2017 – to reduce the prices.
Trump also mentioned the problem in a social position after the visit, saying: “With everything being said, let’s just end and, more importantly, interest rates!”
The day before his visit, Trump also emphasized the need to reduce prices, writing on Truth Social according to which “housing in our country is lagging behind because Jerome” too late “Powell refuses to reduce interest rates. Our rate should be three points lower than it is, saving 1 dollars per year (as a country).
Known for having attributed nicknames to opponents, Trump began to call Powell “too late”, while his frustration in the face of the chair in the Fed chair to reduce rates increased.
