Key Highlights:
- Trump visits the Fed in a rare move by a sitting president, pushing for big interest rate cuts.
- He accuses Fed Chair Jerome Powell of mishandling both rate policy and a $2.5B building renovation.
- Trump warns that high rates could cost the U.S. over $1 trillion per year in debt interest.
Trump Visits Fed to Push for Lower Rates and Call Out Overspending
In a move that caught even seasoned Washington insiders off guard, Donald Trump visited the Federal Reserveheadquarters on Thursday.
It’s been nearly 20 years since a president last did that the last one being George W. Bush back in 2006.
But Trump didn’t just stop by to shake hands and smile for the cameras.
He came with a mission: to demand lower interest rates and call out what he says is massive overspending on the Fed’s renovation project.
“We should have the lowest interest rates in the world and we don’t,” Trump said bluntly after the visit.
Trump Visits as Tensions With Powell Reach New Highs
This visit wasn’t just symbolic. It was personal. Trump and Fed Chair Jerome Powell have had a rocky relationship for years.
Trump has openly criticized Powell, even calling him “dumb” and “a numbskull.” But during the visit, Trump described their meeting as “very productive.”
There was some stress clearly, though. Powell’s hands were tightly held during the tour, and he appeared visually uncomfortable in the photographs.
Meanwhile, Senator Tim Scott (R-SC), who was with Trump, also did not withdraw.
“We had a candid conversation,” Scott told reporters.
“We’re not just talking about interest rates we’re talking about the cost of running the Fed itself.”
A $2.5 Billion Fed Renovation? Trump Isn’t Impressed
In addition to pushing for a rate cut, Trump took aim at the ongoing renovation of the Federal Reserve’s headquarters a project that’s now expected to cost over $2.5 billion, nearly $700 million more than planned.
He suggested the spending was out of control, saying the Fed needs to get its own house in order before controlling the economy.
Trump stated, “We want to lower interest rates, but we also want to finish the Fed building.”
Senator Scott echoed the frustration, questioning how an institution responsible for managing national finances can’t manage a construction budget.
Why Trump Wants Rates Down Fast
Trump’s call for a 3% interest rate cut isn’t just political it’s financial. With the U.S. national debt now over $36.6 trillion, higher interest rates mean the government could soon be spending over $1 trillion each year just on interest payments.
That’s money that won’t go to schools, infrastructure, or healthcare and Trump says it’s time to stop the bleeding.
“Every point in interest costs us $365 billion. That’s real money,” he said.
He argues inflation is under control enough to justify a cut. The Fed Funds Rate currently sits between 4.25% and 4.50%, and Trump believes keeping it that high is hurting the economy more than it’s helping.
Can Presidents Influence the Fed? Not Really But Trump’s Trying
Traditionally, presidents steer clear of influencing the Federal Reserve, which is supposed to operate independently.
But Trump’s visit breaks that tradition and not for the first time.
Some analysts are concerned that the Fed’s independence may be undermined by this kind of pressure. Trump is unconcerned, though.
Trump declared, “I’m not here to cause Powell any discomfort.”“I’m here to make sure the American people aren’t paying for bad decisions.”
Whether or not the Fed responds to Trump’s push remains to be seen.
For now, Powell has said rate cuts won’t happen until inflation falls closer to the 2% target.
What Comes Next?
It is not clear that Trump’s stunning journey would take the needle to a rate policy, but it definitely caught the spotlight.
With the economy slow and borrowing costs, their calls to cut rates may be resonant with more Americans in the front months.
For now, Trump’s visit reminds everyone that he’s willing to confront institutions head-on even ones that presidents usually leave alone.