‘I’d love him to lower interest rates’: Donald Trump grills Powell to cut rates; spars over Fed renovation costs in rare headquarter visit

US President Donald Trump took aim at Federal Reserve Chair Jerome Powell during a rare visit to the central bank’s headquarters on Thursday, criticising the ballooning cost the historic buildings and renewed his demand for lower interest rates.During his visit to the Federal Reserve’s Washington site, just days before a key policy meeting, Donald Trump criticised the rising renovation costs, claiming the price had jumped to $3.1 billion.Despite recently calling Powell a “numbskull” for not slashing interest rates as the White House wanted, and openly toying about firing him. Trump said he had no plans to fire him. “To do so is a big move and I just don’t think it’s necessary,” he added.“I’d love him to lower interest rates,” Trump told reporters while Powell stood beside him, maintaining a stoic expression.The tense exchange at the Fed’s large construction site highlighted growing pressure from the White House on the central bank, as Trump pushed Fed Chair Jerome Powell to “do the right thing” and cut interest rates.The confrontation came just days before the Fed’s 19 policymakers are set to meet for a two-day session, where they’re expected to keep interest rates steady in the 4.25%-4.50% range.Trump has repeatedly called on Powell to slash rates by at least three percentage points. “I’d love him to lower interest rates,” Trump said at the end of the tour, while Powell stood nearby, expressionless.Tensions flared during Trump’s tour of the Federal Reserve site when Trump claimed the renovation cost had jumped to $3.1 billion, higher than the Fed’s stated $2.5 billion.“I am not aware of that,” Powell responded, shaking his head. Standing beside Powell, Trump showed a document listing the costs, which included earlier work on the William McChesney Martin Building at the Fed.“You just added in a third building,” Powell said, pointing out that the “it already been completed five years ago.”Trump was joined by White House budget director Russell Vought and deputy chief of staff James Blair, both vocal critics of the renovation, who raised concerns about oversight and possible fraud. Senate Banking Committee Chair Tim Scott also attended and has demanded answers in a letter to Powell.The Fed later defended the project, citing nearly century-old infrastructure, hazardous material removal, and rising construction costs.Speaking outside the site, Trump insisted there was “no tension” in the meeting and described his conversation with Powell as productive.Trump, along with top White House officials, visited the Federal Reserve’s renovation site in a bid to find proof supporting the administration’s claims that Powell had mishandled the costly project.Trump was guided through the site by Powell, whom he has repeatedly criticised this year for not cutting interest rates. Powell was originally appointed by Trump in 2018 and later reappointed by President Joe Biden.Ahead of Trump’s high-profile visit to the Federal Reserve’s headquarters, Fed staff guided a small group of reporters through the ongoing construction, navigating through machinery, cement mixers, and the loud hum of drills and saws.Staff highlighted that much of the project’s cost now drawing criticism from Trump and allies—stems from essential upgrades, such as blast-resistant windows for security, rising labor and material costs, and tariffs.The renovation, which began in mid-2022, is scheduled for completion in 2027, with staff moving back in by March 2028.Trump’s visit stands in contrast to rare presidential appearances at the Fed. Franklin D. Roosevelt visited in 1937 to dedicate the original building, and George W. Bush attended Ben Bernanke’s swearing-in ceremony in 2006.