Trump: Powell Meeting Was Good, Predicts He Will Lower Rates/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump said his recent meeting with Federal Reserve Chair Jerome Powell went “well” and believes interest rate cuts are likely ahead. He also floated the idea of issuing rebate checks to Americans using tariff revenue, while casting doubt on an imminent trade deal with the European Union. The president continued to question the $2.5 billion Fed headquarters renovation but offered his real estate expertise to help complete the project.
Trump on Powell, Rates, Tariffs + Quick Looks
- Trump says Fed Chair Powell praised U.S. economy in meeting
- Expects Powell to recommend cutting interest rates soon
- Downplays chances of U.S.–EU trade deal by August 1 deadline
- Trump critiques $2.5 billion Fed renovation, offers to help
- Federal Reserve responds diplomatically, thanks Trump for support
- Tariff rebates for Americans under consideration, Trump says
- $124B collected in customs and excise taxes so far in 2025
- DOGE’s $1,200-per-taxpayer savings figure met with skepticism
- Trump administration closed Japan trade deal despite earlier doubts
- Europe trade standoff continues, 30% tariffs loom
Trump: Powell Meeting Was Good, Predicts He Will Lower Rates
Deep Look
President Donald Trump said Friday that Federal Reserve Chair Jerome Powell left him optimistic about forthcoming interest rate cuts following their meeting on Thursday. Speaking with reporters on the White House lawn before departing for Scotland, Trump described the conversation as “good,” and said Powell offered praise for the economy.
“He said, ‘Congratulations. The country is doing really well,’” Trump noted. “And I got that to mean that I think he’s going to start recommending lower rates.”
The prediction marks another chapter in Trump’s ongoing public campaign for lower interest rates, even as the Fed continues to weigh the economic impact of the administration’s aggressive tariff strategies. Trump’s remarks suggest he believes Powell, despite past clashes, may soon fall in line with his monetary preferences.
Renovation Friction Softens
Trump’s comments came a day after he toured the $2.5 billion renovation project at the Federal Reserve’s Marriner S. Eccles building in Washington—a project he has frequently criticized as bloated and wasteful.
Although Trump has previously blasted the cost and timing of the remodel, he appeared to temper his stance slightly. “It needs to be finished,” he said, even offering his expertise as a former real estate developer to help bring the project across the finish line.
The Fed, in a carefully worded response, said: “We are grateful for the President’s encouragement to complete this important project. We remain committed to continuing to be careful stewards of these resources.”
Still, Trump has continued to pressure Powell publicly, including through social media, calling on the Fed to slash rates more aggressively.
EU Trade Talks Stall, Tariff Clock Ticking
Trump also weighed in on trade negotiations with the European Union, saying the likelihood of striking a deal before new tariffs take effect on August 1 was slim.
“I would say that we have a 50/50 chance, maybe less than that,” Trump said. The deal, he added, would need to “buy down” the pending 30% tariff on EU goods. The administration recently finalized a trade agreement with Japan, which Trump had earlier pegged at having just a 25% chance of succeeding—suggesting he remains open to a last-minute breakthrough.
Tariff Rebates Under Consideration
Perhaps most notably, Trump floated the idea of using some of the revenue from tariffs to issue rebate checks to lower-income Americans.
“We’re thinking about a rebate because we have so much money coming in from tariffs,” Trump said. “A little rebate for people of a certain income level might be very nice.”
The U.S. Treasury has reported $124 billion in customs and excise tax revenue so far in 2025, a figure that includes tariffs.
Trump has previously said he may also direct 20% of cost savings identified by the Department of Government Efficiency (DOGE), led by Elon Musk, back to taxpayers. DOGE claims to have saved nearly $1,200 per taxpayer as of late June, though its methodology has drawn significant scrutiny.
What’s Next?
As Powell and the Federal Open Market Committee prepare for their next meeting, markets will be watching closely to see whether Trump’s predictions materialize. The Fed has thus far remained cautious, indicating that any rate cuts will be based on concrete inflation and labor data.
Meanwhile, the administration faces a narrow window to finalize trade terms with the EU before tariffs go into effect, adding pressure on both sides of the Atlantic.
And if tariff rebates emerge as official policy, it could reshape how Americans view the costs and benefits of Trump’s trade war strategy heading into the next fiscal quarter.
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