Trump Presses US Central Bank Chief to Cut Rates During Tense Visit
President Donald Trump criticized the cost of renovating two historical buildings at the Federal Reserve headquarters and pressed for lower interest rates during a rare visit to the central bank.
During his visit, Trump called Powell a "numbskull" earlier this week for not reducing borrowing costs as demanded by the White House.
However, he clarified that he does not intend to fire Powell, stating that it is a big move and not necessary.
The president also stated on his Truth Social media site that the renovation project, which has substantial cost overruns, should be completed as soon as possible.
Trump emphasized that the US economy is doing well and can afford the costs.
The visibly tense interaction at the Fed marked an escalation of White House pressure on the central bank for Powell to lower interest rates.
The central bank's policymakers are expected to maintain their benchmark interest rate in the 4.25 percent-4.50 percent range during their upcoming meeting.
Trump has repeatedly demanded a significant reduction in rates, but Powell remains expressionless and focused on his preparations for the rate-setting session.
The renovation project at the Fed headquarters started in mid-2022 and is expected to be completed by 2027.
Critics, including Senator Tim Scott, have raised concerns about potential oversight issues and possible fraud related to the project.
Despite Trump's criticism, market reaction to his visit was subdued.
The yield on benchmark 10-year Treasury bonds increased slightly due to a stable labor market, which does not require support from a Fed rate cut.
The S&P 500 equities index closed largely flat on the day.