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Trump Visits Fed to Pressure Powell Over $2.5 Billion Renovation

The in-person inspection of the $2.5 billion overhaul underscores Trump’s push for lower interest rates through direct pressure on the Fed chair

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U.S. President Donald Trump looks on as Jerome Powell, his nominee at the time to lead the U.S. Federal Reserve, moves to the podium at the White House in Washington, U.S., November 2, 2017. REUTERS/Carlos Barria/File Photo
FILE - The sculpture of an eagle looks out from behind protective construction wrapping on the facade as the Federal Reserve Board Building undergoes both interior and exterior renovations, in Washington, Monday, Oct. 23, 2023. (AP Photo/J. Scott Applewhite, File)
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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.