President Donald Trump visited the Federal Reserve headquarters on March 15, 2024, to inspect a major renovation project. This visit marks a significant moment amid ongoing tensions regarding interest rates, which Trump has criticized as being detrimental to American families. Accompanied by Jerome Powell, the chair of the Federal Reserve, Trump donned a white hard hat as they toured the construction site, showcasing a rare public appearance together.
During the visit, Trump softened his previous threats to fire Powell, indicating that he does not feel immediate pressure to remove him. He expressed confidence that Powell would eventually lower interest rates, which he views as essential for fostering economic growth. “No, there’s no pressure. We want to have — you know his term comes up soon. I think he’s going to do the right thing,” Trump stated, referencing Powell’s term, which expires in May 2024.
Trump also hinted at potential successors, mentioning he has “two or three people” in mind for Powell’s position. He jokingly suggested nominating Senator Tim Scott (R-S.C.), who accompanied him, but acknowledged Scott’s commitment to his role in Congress as the chair of the Senate Banking Committee.
Trump and Powell’s Relationship: A Complex Dynamic
Despite a history of disparaging remarks about Powell, including calling him “stupid” and “stubborn,” Trump insisted there was no tension during their meeting. “I thought we had a good meeting. There was no tension,” Trump remarked. This assertion comes as Powell continues to face criticism for maintaining higher interest rates amidst economic uncertainty.
Trump addressed the ongoing renovation project, which has seen costs balloon from an initial estimate of $2.5 billion to approximately $3.1 billion. He noted that while he believes the project has experienced cost overruns, he does not see this as grounds for Powell’s dismissal. “Look, I would love to see it completed, I don’t want to put that in this category,” Trump said when questioned about the renovation’s financial implications.
During the tour, Powell countered Trump’s cost claims, stating that the president was referencing figures from an outdated project. “I’m not aware of that, Mr. President,” Powell responded, clarifying that the figures did not pertain to the current renovation.
Focus on Interest Rates and Economic Impact
While discussing the renovation, Trump repeatedly emphasized his main concern: the need for lower interest rates. He argued that the renovation’s costs were secondary to the economic impact of the Fed’s monetary policy. “We want to get the rates down and want to get the Fed building finished,” he said, highlighting the dual focus of his administration on both the renovation and economic viability for American families.
Following the visit, Trump took to Truth Social, acknowledging the substantial cost overruns but maintaining a positive outlook on the nation’s economic capacity to absorb such expenses. “The cost overruns are substantial but, on the positive side, our Country is doing very well and can afford just about anything,” he posted.
As the tour concluded, Trump reflected on his time at a construction site, reminiscent of his previous career in real estate development. He acknowledged the complexities of the renovation process but reiterated his desire to assist in its completion, stating, “I want to help them get it finished. It’s been going on for years.”
This visit underscores the ongoing friction between the White House and the Federal Reserve, particularly concerning interest rates, as both parties navigate the balance between economic growth and monetary policy.
