On Thursday, President Trump toured the Fed’s remodeled headquarters with Fed Chair Jerome Powell. The building, still under construction, has received criticism for its hefty $2.5 billion price tag.
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During the tour, Trump continued to pressure Powell to lower rates, even giving him an awkward slap on the back. He also shut down speculation that he would fire Powell before his term ends in May 2026.
“To do that is a big move, and I just don’t think it’s necessary,” said Trump, adding “I believe that he’s going to do the right thing.”
Powell Plans to Serve Out Remainder of His Term
Powell has privately communicated to close advocates that he is set on serving the remainder of his term and will not bow to political pressure in order to maintain the independence of the Fed.
“He feels very strongly that his responsibility is to maintain that independence,” said South Dakota GOP Senator Mike Rounds.
That comes despite around-the-clock pressure from Trump for the Fed to cut rates. Earlier this week, Trump characterized Powell as a “numbskull” who has locked out buyers from home purchases given high mortgage rates. Trump also claimed that Powell delaying cutting rates has cost the U.S. $1 trillion in debt interest payments.
Track the federal funds rate and other key economic metrics with TipRanks’ Economic Indicators Dashboard.
