Trump criticizes Fed during visit, raising concerns over headquarters renovation.
Makes blunt call for Powell to “cut interest rates.”
Market sees slim odds of rate cut at upcoming July FOMC meeting.

With the July meeting of the Federal Open Market Committee (FOMC) just around the corner, former President Donald Trump made an unexpected visit to the Federal Reserve’s headquarters. During his meeting with Fed Chair Jerome Powell, Trump reportedly criticized the central bank’s controversial renovation spending and openly called on Powell to lower interest rates.

Trump Makes Rare Visit to Federal Reserve Headquarters

On July 24 (local time), former President Donald Trump visited the Federal Reserve’s headquarters under the pretext of inspecting ongoing renovation work. The visit was highly unusual, as sitting or former presidents rarely make direct appearances at the independent central bank. Trump was accompanied by Fed Chair Jerome Powell, Republican Senators Tim Scott and Thom Tillis, Office of Management and Budget (OMB) Director Russ Vought, Federal Housing Finance Agency (FHFA) Director Bill Pulte, and several Trump-appointed members of the National Capital Planning Commission.

Wearing a hard hat at the construction site, Trump stood beside Powell and declared, “One of the reasons I came here is the budget overrun issue. I want to know how this happened.” In recent weeks, OMB Director Vought and Deputy White House Chief of Staff James Blair have raised concerns about the Fed’s renovation budget, reportedly framing the issue as a potential justification for Powell’s dismissal.

Trump himself echoed those concerns during the visit, citing a rise in renovation costs. “The budget seems to be about $3.1 billion, up from $2.7 billion.” he remarked. Powell, standing at his side, shook his head and responded, “That number has never come from anyone inside the Fed.” When Trump pulled out a document from his suit pocket, Powell examined it with reading glasses and clarified, “That figure includes a third building across the street that was completed five years ago.”

Trump Softens Tone on Powell, But Renews Push for Sub-1% Interest Rates

Following his tour of the Federal Reserve headquarters, former President Donald Trump told reporters that he did not believe Fed Chair Jerome Powell should be removed from office—a notable departure from his previous stance. “That would be a very big move, and I don’t think it’s necessary,” he said. When asked what Powell would have to say for Trump to stop criticizing him, the former president replied bluntly, “Well, I’d like him to cut rates.” Powell reportedly smiled in response but declined to comment.

Trump also suggested that a rate cut by the Fed would create a “synergistic effect” when combined with the administration’s ongoing tariff negotiations. “We want rates to come down,” he said. “The economy is booming, and interest rates are the final piece.” He added, “High rates don’t help growth. We’re already doing well, but if rates go lower, we’ll take off like a rocket.” Trump went further, asserting, “We should have the lowest interest rates in the world,” and claimed that reducing rates to 1% could save the government over $1 trillion.

This is not the first time Trump has called for rates below 1%. During a speech at the White House Faith Office luncheon on July 14, he reiterated that the U.S. economy is strong, corporate confidence is surging, incomes are rising, prices are falling, and inflation is “no longer a problem.” He again stated that the federal funds rate “should be under 1%.” Trump also criticized the cost of federal borrowing, noting that each one percentage point increase in rates adds roughly $360 billion (approx. ₩496 trillion) in annual interest payments on the national debt.

Markets Skeptical of Rate Cut at July FOMC Amid Stable Data

As the Trump administration continues to ramp up pressure on the Federal Reserve to lower interest rates, markets are closely watching the upcoming July 29–30 FOMC meeting for any policy shift. Since cutting the benchmark rate to 4.50% in December, the Fed has held rates steady through all four meetings this year—signaling its commitment to independent decision -making despite persistent political pressure.

Most analysts expect the Fed to hold rates once again, citing a lack of compelling data to support a cut. Key economic indicators remain relatively stable. On July 17, the U.S. Department of Commerce reported that retail sales in June rose 0.6% from the previous month to $720.1 billion, sharply exceeding market expectations tracked by Dow Jones (0.2%), Reuters (0.1%), and Bloomberg (0.1%).

The labor market—often seen as a barometer of real economic conditions—also remains resilient. On July 24, the U.S. Department of Labor reported 217,000 new unemployment claims for the week ending July 19, a decrease of 4,000 from the previous week and the lowest level since early April. The figure also came in below the Dow Jones consensus forecast of 227,000. Weekly jobless claims have now declined for six consecutive weeks.