Trump Plans Federal Reserve Visit as Feud With Powell Escalates/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump is set to visit Federal Reserve headquarters Thursday amid growing tensions with Chair Jerome Powell. The visit follows Trump’s criticism over interest rate policy and a ballooning $2.5 billion renovation project. Trump has hinted Powell’s handling of the Fed could justify his removal, sparking concerns about central bank independence.
Trump-Fed Tensions: Quick Looks
- Trump visiting Federal Reserve HQ in Washington on Thursday
- Jerome Powell under fire over renovation costs and interest rate policy
- Fed’s short-term rate held at 4.3% despite Trump’s push for cuts
- Renovation costs surged to $2.5B, up from original $1.9B estimate
- Trump calls spending “disgraceful”, hints at Powell’s possible dismissal
- Fed renovation includes underground construction and inflation-related cost spikes
- Economists warn firing Powell could endanger Fed’s independence
- Powell cites caution over Trump’s tariffs and their inflationary impact
- Trump wants rate cuts to stimulate economy and reduce U.S. debt costs
- Visit marks a rare step by a sitting president into Fed premises
Deep Look: Trump’s Federal Reserve Visit Comes Amid Mounting Criticism of Chair Powell
WASHINGTON — President Donald Trump is scheduled to visit the Federal Reserve’s Washington headquarters Thursday, deepening a standoff with Fed Chair Jerome Powell over monetary policy and spending decisions at the central bank.
The visit, which comes amid Trump’s ongoing push for interest rate cuts, follows recent comments in which the president openly suggested that Powell’s handling of a costly renovation project could be grounds for dismissal. Trump’s remarks have reignited debates over the long-standing independence of the Federal Reserve from political interference.
Interest Rates at the Center of the Feud
At the heart of the conflict is the Fed’s decision to keep its benchmark short-term interest rate steady at 4.3% throughout 2025. This decision has frustrated Trump, who has repeatedly argued for further rate cuts in order to stimulate the economy and reduce interest payments on the federal debt.
While the Fed made three rate cuts in 2024, Powell has since taken a more cautious stance in light of economic uncertainties. One key concern for the Fed has been the inflationary impact of Trump’s renewed tariffs on a wide range of imported goods. Powell has indicated that the central bank wants to assess the long-term effects of these policies before making additional moves.
Exploding Renovation Costs Draw Presidential Ire
Trump’s latest criticism of Powell revolves around the Federal Reserve’s ongoing headquarters renovation. Originally projected to cost $1.9 billion, the renovation’s price tag has ballooned to approximately $2.5 billion due to inflation-related surges in building material costs and complex underground construction.
“When you spend $2.5 billion on, really, a renovation, I think it’s really disgraceful,” Trump said last week when asked if the cost overruns might justify removing Powell. “I think it is.”
The comment sparked alarm among economists and market analysts, many of whom see such a move as a threat to the institution’s autonomy. The central bank’s independence from direct presidential control has historically been viewed as vital for maintaining investor confidence and preventing politically driven monetary manipulation.
A Precedent-Setting Visit
Thursday’s visit marks an unusual step for a sitting president. While previous presidents have met with Federal Reserve chairs, an official visit to the central bank’s headquarters amid a public dispute is rare.
Trump’s appearance is expected to further underscore the administration’s grievances with the Fed, particularly Powell’s resistance to aggressive rate cuts. The meeting comes as the White House attempts to bolster economic growth heading into the 2026 midterm elections.
Despite the pressure from the Oval Office, Powell has so far stayed firm on monetary policy, insisting that decisions will continue to be guided by economic data and not political agendas.
Tensions Echo Earlier Trump-Powell Clashes
This isn’t the first time Trump has publicly sparred with Powell. During his first term, Trump frequently criticized the Fed for raising rates, claiming it was undermining the stock market and the broader economy. Those tensions have only intensified since Trump returned to office, especially as global markets react to his tariff-heavy trade policies and ongoing regulatory rollbacks.
Powell, who was originally appointed to the Fed by Trump in 2018, has become a political target despite leading the central bank through volatile periods including the COVID-19 pandemic and post-pandemic inflation waves.
Economists Warn of Risks
A growing chorus of economists and financial experts warn that removing Powell, especially over construction costs or policy disagreements, would send shockwaves through financial markets. Many fear such a move would suggest the Fed is vulnerable to political whims, potentially devaluing the dollar and destabilizing bond markets.
“The Fed’s independence is not a luxury; it’s a necessity for long-term economic stability,” said one former central banker. “If Powell is fired over a renovation bill, what’s next?”
What Comes Next
The showdown between Trump and Powell appears far from over. Trump’s visit may serve as a pressure tactic to push the Fed into reconsidering rate policy, but insiders say Powell is unlikely to shift his approach without compelling economic data.
As the economy adjusts to Trump’s tariffs, and with inflation concerns still present, the Fed appears determined to wait and watch — even if that means staying in the crosshairs of the most powerful office in the land.
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