President Donald Trump and Federal Reserve Chairman Jerome Powell went back and forth in front of the press on Thursday over Trump's claims about a cost-overrun at Washington's Fed headquarters.
When Trump began his unusual tour of the Fed building, the stunning line-up was what was widely seen as the latest chapter in his pressure campaign to resign or resign as the central bank chair.
But Trump also suggested he has abandoned consideration of firing Powell earlier this month despite unprecedented, legally contested ideas.
“Doing that is a big move and I don't think it's necessary,” Trump told reporters after a brief vomit with Powell.
He added, “I believe he's going to do the right thing.”
The president's visit to the Fed's construction site on Thursday afternoon came as his administration was based on the costly renovations of two historic central bank buildings in DC recently.
Shortly after his arrival, Trump and Powell were seen touring the site together.
They approached the reporters there, and Trump alleged that construction costs for the continued renovation of the two Fed buildings exceeded $3.1 billion.
“I've never heard of anyone,” Powell replied.
He said Trump is adding to the costs of a third government building “built five years ago.”
“So we're going to look at it. We've got a long way to go, we're going to see what's going on,” Trump replied.
When reporters asked if Powell could say anything to put Trump back from his criticism, the president said, “Well, I hope he will lower interest rates.”
Trump struck a more reconciliatory tone later Thursday, writing about the true society that touring the site with Powell was a “great honor.”
“It's come a long way, and it would have been much better if it never started, but what it was and if possible it would end as soon as possible,” he wrote.
“The cost overrun is quite a bit, but on the positive side, our country is doing very well and we can afford to do almost anything, even at the cost of this building!”
US President Donald Trump and Federal Reserve Chairman Jerome Powell will tour the Federal Reserve $2.5 billion headquarters renovation project in Washington, DC on July 24, 2025.
Chip somodevilla | Getty Images
Trump said he will be joined by Republican Senators Tim Scott and Tom Tillis and a small number of executives, including Federal Housing and Finance Director Bill Prute.
Pulte is one of Powell's toughest critics and one of the most vocal supporters of the Trump administration, who is hoping to replace him.
“Jerome Powell must resign,” Plute wrote to X on Thursday.
Trump is demanding that Powell benchmark rates be immediately lowered, but he is demanding that he be accused of incompetence and political bias, even though it was Trump who first appointed Powell for his role in 2017.
The main interest rates set out what banks charge each other for lending overnight, but also flow out to multiple consumer products.
The Fed completely dropped that rate from points in the second half of 2024, raising it to the 4.25%-4.5% range. However, prices have been stable since December. Trump claims that by cutting interest rates, he saves hundreds of billions of dollars in interest costs.
Interest payments on US debt exceeded $1.1 trillion in 2024.
The market primarily believes it will be on hold when the central bank takes place next week, but it could potentially cut prices again by September and the end of the year.
Trump tried to brand Powell under the nickname “Too late.” And last week he asked a room full of Republicans in the house if they thought they should fire the Fed chair.
But Trump later retreated and said that it was “highly unlikely” that he would end Powell, unless he had to leave for fraud.
It is unclear whether the president has the authority to fire the Fed chairman. The Supreme Court recently showed in its ruling that central bank independence is protected by legal precedents.
But Trump and his administration have maintained pressure by targeting the costs associated with years of multi-billion dollar renovations of two historic Fed buildings in Washington, D.C.
Trump's budget director, Russ Vert, claimed earlier this month that Powell “mismanaged the Fed” as he questioned the “wealthy” construction project.
Treasury Secretary Scott Bescent, who is considered a potential candidate to replace Powell, said on Monday that the Fed would need a comprehensive review under Powell.
A sitting president rarely appears in the Fed. Trump has only been such a visit since 1937, when President Franklin D. Roosevelt dedicated himself to the building.
And there was no prior appearance as the president openly urged changes to monetary policy and threatened to investigate the actions of the Fed chairman.
Visits are also being made as Trump aims to distract attention from growing debate over the handling of still-secret files related to the late sex offender Jeffrey Epstein.
– CNBC's Jeff Cox contributed to this report.