Trump Softens Tone Toward Powell During Fed HQ Visit, Renews Push for Rate Cuts

In a rare and closely watched appearance at the U.S. Federal Reserve’s Washington headquarters, President Donald Trump publicly downplayed tensions with Fed Chair Jerome Powell, while using the occasion to renew his long-standing call for significant interest rate cuts.

The visit, centered around a tour of the Fed’s multi-billion-dollar renovation project, featured a mix of sharp policy messaging and unexpected levity. Trump jokingly suggested he might fire a project manager over cost overruns, but then quickly clarified that his remarks were not personal, patting Powell on the arm and insisting: “I just want to see the project finished.”

Trump and Powell, both wearing white hard hats, led reporters through the construction site of the Fed’s iconic Eccles Building. The tour turned momentarily tense when Trump cited a $3.1 billion price tag for the renovations, a figure Powell swiftly contested, stating it included a separate building completed years earlier.

Trump handed Powell a printed sheet showing the cost estimate, but Powell shook his head and explained the figure was misleading. When asked what he would do if a manager in his own company ran a project over budget, Trump replied bluntly: “I’d fire him.”

Still, the president dismissed suggestions of conflict, telling reporters: “There’s no tension with Chairman Powell,” and adding that the issue at hand wasn’t serious enough to warrant his dismissal.

Though Trump has publicly criticized Powell for over a year, and reportedly considered removing him in 2024, he softened his tone on Thursday. When pressed, Trump said he does not believe Powell should be fired and emphasized that his top priority was rate relief.

“I’d like to see interest rates go down. What more can I say?” Trump quipped, adding: “I’m not putting this in a category of firing. I just want something very simple to happen: Rates should come down.”

Due to the Fed’s communications blackout ahead of its July 30 policy meeting, Powell did not comment on monetary policy during the visit.

While previous Trump attacks on Powell were delivered on social media or in closed-door meetings, Thursday’s appearance marked a notable public escalation — and one of the few times a sitting U.S. president has walked the halls of the Fed to directly express dissatisfaction.

The visit comes amid growing Republican criticism of the Fed’s $2.5 billion renovation, which Trump allies have portrayed as extravagant and mismanaged. The president was accompanied by a number of key aides and Powell critics, including Budget Director Russ Vought, Deputy Chief of Staff James Blair, and FHFA Director Bill Pulte, who has called on Powell to resign and accused the Fed of misleading Congress.

Blair posted on X (formerly Twitter) earlier Thursday that the cost of the renovation now “exceeds Versailles — adjusted for inflation.”

Fed officials have defended the construction, which includes the rehabilitation of the Eccles Building (built in 1937) and a second historic structure nearby. They say cost increases are largely tied to post-9/11 security requirements, including blast-resistant windows, as well as labor shortages and inflation in construction materials.

Earlier in the day, Fed staff gave journalists a behind-the-scenes look at the active site, where 700–800 workers are engaged in round-the-clock shifts. Officials acknowledged past missteps, such as a canceled plan for rooftop seating, but said changes like increasing elevator height were safety-driven.

The total cost has grown from $1.9 billion to $2.5 billion since 2020. Powell, facing intensifying pressure from GOP lawmakers, recently requested an internal audit of the project by the Fed’s inspector general.