President Trump suddenly "turned the car" on Mr. Powell after meeting at the Fed

(Dan Tri) - After meeting with Chairman Jerome Powell at the Fed headquarters, President Donald Trump withdrew his threat to fire the head of the US central bank.

US President Donald Trump and US Federal Reserve Chairman Jerome Powell had a back-and-forth exchange before the press regarding the White House owner's statements about cost overruns in the Fed headquarters renovation project.

On the afternoon of July 24, President Donald Trump visited the Fed headquarters in Washington, DC. He and Fed Chairman Jerome Powell inspected the renovation process of the building. The visit took place after the White House and Republicans criticized the Fed for overspending on the project.

The surprise meeting came as Mr Trump began a rare tour of the Fed’s headquarters, a visit widely seen as Mr Trump’s latest move in a campaign to pressure Mr Powell to lower interest rates or resign.

According to CNBC, Mr. Trump visited the construction area at the Fed. The costly renovation of two Fed buildings has been going on for years and has recently become the new focus of Mr. Trump's criticism.

Shortly after arriving, Mr. Trump and the central bank chief toured the construction site together, both wearing white hard hats.

They met with reporters there, and Mr. Trump claimed that the cost of renovating the two Fed buildings had reached $3.1 billion. However, Mr. Powell responded: “I haven’t heard that.”

When a reporter asked if there was anything Mr. Powell could say to Mr. Trump to back off his criticism, the president replied: “Well, I would love for him to lower interest rates.”

President Trump also hinted that he would drop any consideration of firing Mr Powell. “It was a big move and I don’t think it was necessary,” he told reporters after his brief spat with Mr Powell.

“I believe he will do the right thing,” Mr. Trump added.

President Donald Trump and Fed Chairman Jerome Powell tour the Fed headquarters renovation project (Photo: Reuters).

Mr Trump struck a more conciliatory tone late on July 24. He wrote on the social network Truth Social that it was a “great honor” to tour the Fed renovation project with Mr Powell.

“The costs are significant, but on the positive side, our country is doing very well and can afford most things, even the cost of this building,” he stressed.

The Fed estimated the cost of renovating the headquarters at $1.9 billion in 2019, then revised it to $2.5 billion. The agency explained the increase of more than 33% due to changes in design, material and labor costs, and "unforeseen factors."

President Trump nominated Powell for the position during his first term. However, the relationship between the two later deteriorated due to disagreements on interest rates and the economy . Powell was then nominated for a second term by former President Joe Biden.

The White House and Republican lawmakers have recently criticized the Fed's over-budget renovation project, raising suspicions that Trump may be looking for a reason to fire the Fed chief. However, there has been no evidence of fraud, and the Fed has denied criticism of its handling of the project.

In late May, Mr. Trump invited Powell to the White House for a face-to-face meeting, the first since taking office. In a statement after the meeting, the Fed said Powell assured the US President that he and his colleagues at the Fed "will formulate monetary policy in accordance with the law, to support maximum employment and price stability." Mr. Powell emphasized that all decisions are based on careful, objective and non- political analysis.

Source: https://dantri.com.vn/kinh-doanh/tong-thong-trump-dot-ngot-quay-xe-ve-ong-powell-sau-cuoc-gap-tai-fed-20250725163821842.htm