In a rare public appearance alongside Federal Reserve Chair Jerome Powell, President Donald Trump toured the Fed’s ongoing headquarters renovation on Thursday — a visit that combined construction site banter with pointed commentary on interest rates and federal spending.
The event marked a notable moment in the often-tense relationship between Trump and Powell, one that has been defined in recent months by the president’s vocal criticism of the Fed’s decision to hold interest rates steady.
Yet during Thursday’s visit, Trump struck a somewhat softer tone, backing off previous suggestions that Powell should be removed from his post, and instead expressing confidence that the chair would eventually lower rates — albeit with continued pressure.
1. Trump Pulls Back on Firing Powell
Though Trump has repeatedly flirted with the idea of firing Powell, whom he appointed in 2017, he made clear Thursday that such a drastic move is off the table — for now.
“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. Everybody knows what the right thing is,” Trump said, referring to rate cuts.
Pressed on why he wouldn’t replace Powell if he believes high interest rates are harming American families, Trump replied, “Because to do that is a big move and I just don’t think it’s necessary. I believe that he’s going to do the right thing... It may be a little too late, as the expression goes.”
Trump added he already has “two or three people” in mind to succeed Powell when his term expires in May 2026, even joking that Senator Tim Scott (R-S.C.), who stood beside him during the visit, could be a candidate — though Scott quickly brushed off the idea, saying he wouldn’t leave the Senate.
2. Trump and Powell Downplay Personal Tensions
Despite a history of personal jabs — including Trump calling Powell “stubborn” and a “knucklehead” — both men downplayed any friction on Thursday.
“I don’t think it was tense,” Trump said of the visit. “I thought we had a good meeting. There was no tension. No tension. I think he had more tension with my great senator to the right,” he added, nodding to Scott.
Still, the light-hearted moment didn’t mask the underlying policy disagreement: Trump wants interest rates lowered to spur borrowing and growth ahead of a potential re-election bid, while Powell continues to signal caution amid persistent inflation concerns.
3. Renovation Costs Spark a Dispute
The $3.1 billion renovation of the Federal Reserve’s headquarters became a flashpoint during the visit, with Trump questioning the project’s cost and management.
“It’s a very complex thing that could have been made simple,” Trump said. “In many ways, it’s too bad it started, but it did start.”
Asked if the project’s cost overruns were a “fireable offense,” Trump initially replied, “Generally speaking, what would I do? I’d fire him.” But he quickly clarified, “I don’t want to put that in this category.”
Powell, meanwhile, pushed back on Trump’s numbers. When the president claimed the cost had ballooned to $3.1 billion — up from $2.5 billion — Powell responded, “I’m not aware of that, Mr. President.”
The exchange became unexpectedly detailed, with Trump pulling out a document he said supported his estimate, and Powell replying it included costs from a separate building completed five years ago.
4. Focus Remains on Interest Rates, Not Bricks and Mortar
While the renovation project took center stage visually — with both men donning white hard hats for the tour — Trump emphasized that his larger concern remains the Fed’s monetary policy.
“We want to get the rates down and want to get the Fed building finished,” Trump said. “More importantly, they have to get interest rates down.”
He added, “We looked around… we saw what we saw and the big thing is to get it done. They have to get it done, they have to get finished.”
Scott chimed in with a more pointed summary: “Too expensive. Bottom line is this, Americans deserve to become first-time homebuyers.”
5. Trump Leans Into Familiar Territory: Construction and Critique
The visit allowed Trump to return to familiar terrain — quite literally. “It felt good to be back at a construction site,” he said, referencing his past as a real estate developer.
While he stopped short of accusing the Fed of outright mismanagement, he noted that, “If I were in charge, I would have handled the project differently.”
“There’s always Monday morning quarterbacks. I don’t want to be that. I want to help them get it finished,” Trump said.
He reiterated that while the price tag is substantial, the U.S. economy remains strong enough to absorb it. “The cost overruns are substantial but, on the positive side, our Country is doing very well and can afford just about anything — Even the cost of this building!” he later posted on Truth Social. “I’ll be watching and, hopefully, adding some expertise.”
The Bottom Line
Trump’s visit to the Fed served both symbolic and strategic purposes: a chance to reaffirm his influence over economic messaging ahead of an election year, and to continue his push for rate cuts without triggering legal battles over Powell’s job.
