President Donald Trump plans to step foot in the Federal Reserve on Thursday as his allies scrutinize its expensive building renovations, a highly personal and confrontational escalation of his campaign to pressure the central bank to slash interest rates.
Trump administration officials have used concerns about the building overhaul to cast doubt on Fed Chairman Jerome Powell’s decision-making. They were scheduled to inspect the site on Thursday, and the White House announced late Wednesday that the president would also be visiting.
The visit reflects Trump’s disregard for the traditional independence of the Fed, which plays a foundational role in the American economy by setting monetary policy that is supposed to be free of political influence.
While previous presidents have criticized the Fed’s decisions, Trump’s sustained campaign is an unusual and, his critics say, dangerous departure from the norm. He has called on Powell to resign, insulted him repeatedly and suggested he could be fired.
More recently, Trump has said he has no plans to oust Powell, which could be illegal. Pushing Powell out also would send shockwaves through global markets, potentially having the opposite effect that Trump wants as he pushes for lower borrowing costs.
Trump, a Republican, appointed Powell during his first term, and President Joe Biden, a Democrat, extended his tenure. Powell’s term doesn’t end until next May, and he’s previously insisted that he will serve until then.
Not everyone in Trump’s administration agrees with the president’s contention that Powell needs to resign.
“There’s nothing that tells me that he should step down right now,” said Treasury Secretary Scott Bessent, whom Trump has floated as a potential replacement for Powell, in a recent interview with Fox Business. “He’s been a good public servant.”
Trump has criticized Powell for months because the chair has kept the short-term interest rate the Fed controls at 4.3% this year, after cutting it three times last year. Powell says the Fed wants to see how the economy responds to Trump’s sweeping tariffs on imports, which Powell says could push up inflation.
Powell’s caution has infuriated Trump, who has demanded the Fed cut borrowing costs to spur the economy and reduce the interest rates the federal government pays on its debt.
Trump will likely be disappointed again soon. A key Fed committee is expected to keep rates where they are when it meets next week.
The Fed has been renovating its Washington headquarters and a neighboring building. With some of the construction occurring underground and as building materials have soared in price after inflation spiked in 2021 and 2022, the estimated cost has ballooned from $1.9 billion to about $2.5 billion.
When asked last week if the costly rebuilding could be grounds to fire Powell, Trump said, “I think it sort of is.”
“When you spend $2.5 billion on, really, a renovation,” Trump said, “I think it’s really disgraceful.”
