President Trump’s Historic Visit to the Federal Reserve: A Show of Influence on Monetary Policy
President Donald Trump made a historic visit to the Federal Reserve on Thursday, touring the central bank’s controversial $2.5 billion renovation project alongside Fed Chair Jerome Powell. This marked the first time a sitting president has visited the Fed headquarters in nearly 20 years, with both men donning hard hats for the construction site tour.
The visit was characterized by a tense public exchange between Trump and Powell over renovation costs. Trump claimed the project had ballooned to $3.1 billion, a figure Powell corrected in real time, noting that it included a third building completed years ago.
Trump used this opportunity to reiterate his demands for immediate interest rate cuts. He expressed his desire for Powell to lower rates, suggesting a 3 percentage point reduction could save the U.S. over $1 trillion annually.
Despite the public pressure campaign, Trump backed away from previous threats to fire Powell. He called such a move “unnecessary” and expressed his belief that the Fed chair “will do the right thing”.
The Federal Reserve is expected to keep rates steady at next week’s policy meeting. However, markets are pricing in potential cuts starting in September. This visit underscores Trump’s unprecedented approach to Fed relations, breaking with decades of presidential deference to central bank independence.
Source: https://www.cnbc.com/2025/07/24/trump-powell-fed-visit.html