Overview
- President Donald Trump and senior aides toured the Federal Reserve’s headquarters Thursday for the first presidential visit to the central bank in nearly 20 years to examine a $2.5 billion reconstruction of its historic buildings.
- Trump criticized Chair Jerome Powell’s management of structural repairs—citing asbestos removal and system upgrades—and called the cost overruns “disgraceful,” suggesting they could justify his dismissal.
- Powell has defended the project as essential maintenance and maintained the federal funds rate at 4.25 %–4.5 % to gauge tariff-driven inflation, with policymakers widely expected to hold rates steady at their July 30 meeting.
- A recent Supreme Court decision and the Federal Reserve Act restrict presidential removal of the Fed chair to misconduct, reinforcing the central bank’s independence from policy-based dismissal.
- Analysts warn that this unprecedented White House intervention risks politicizing monetary policy and undermining the Fed’s autonomy established since 1935.