President Trump on Thursday visited the Federal Reserve headquarters alongside chair Jerome Powell to tour a major renovation taking place there, a project he and his administration have criticized as being over budget.
Powell has drawn Trump’s ire over the central bank’s decision to keep interest rates where they are, citing economic uncertainty. Trump’s visit to the facility included a rare public appearance of the president and Powell together, wearing white hard hats while they walked around the construction site.
Trump notably backed off the notion of firing Powell, whom he appointed in 2017, but kept up the pressure of wanting interest rates lower to make borrowing more affordable.
Here are five takeaways from the visit.
Trump backs off pressure on Powell
Trump has for months teased the possibility of firing Powell, which could run into a host of legal issues if he does so without cause. On Thursday, he backed off that notion significantly, saying there was “no pressure” on Powell to step down from his role before his term is up in May, arguing that he thinks the chair will lower interest rates eventually.
“No, 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 lowering interest rates.
When asked why he wouldn’t fire Powell if he thinks interest rates are hurting families, Trump said that would be unnecessary.
“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, I believe that the chairman is going to do the right thing. It may be a little too late, as the expression goes,” he said, referring to his nickname for “too late” Powell.
Trump said he had two or three people in mind to replace Powell when his term expires next May. The president also quipped that he would nominate Sen. Tim Scott (R-S.C.), who was standing alongside Trump, but that the senator would not leave his post in Congress. Scott chairs the Senate Banking Committee, which oversees the Fed.
Trump says ‘no tension’ with Powell
The president asserted there was no tension between him and Powell during the visit on Thursday, despite the ongoing critical comments and name-calling he has lodged at the chair over not lowering rates.
“I don’t think it was tense,” he said when asked about the energy.
“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 said, referring to Scott.
“I feel good about it,” Trump added about his relationship with Powell, who he has called “stupid,” “stubborn” and a “knucklehead.”
Trump and Powell last met at the White House in May. The White House at the time said that Trump did not tell Powell he wanted to replace him.
Trump says Fed renovation not fireable offense
Trump said after he was given a tour of the project that the renovation cost does not give him grounds to nix Powell.
“Look, I would love to see it completed, I don’t want to put that in this category,” he said when asked if the project is a fireable offense. “It’s a very complex thing that could have been made simple.”
Trump, alongside Powell earlier in the tour, was asked what he would do if a project manager was above budget and he replied that he would fire him.
“Generally speaking, what would I do? I’d fire him,” Trump said.
The president added that he wants to see the renovation “get finished.”
“In many ways, it’s too bad it started but it did start,” he said.
Trump last week suggested the cost overruns could be a fireable offense for Powell after top White House officials have zeroed in on the price tag for the changes to the building.
Powell pushes back on price tag
In one of the more remarkable moments during the visit, Powell pushed back on Trump’s cost estimate of the renovations, telling the president he was looking at numbers from an old project.
“It looks like it’s about $3.1 billion. Went up a little bit, or a lot,” Trump said, asserting the cost of the renovation had increased from the previously estimated $2.5 billion.
Powell shook his head.
“I’m not aware of that, Mr. President,” the chair said. “I haven’t heard that from anybody at the Fed.”
Trump pulled out a piece of paper from his suit jacket that he said backed up his estimate. Powell pulled out his glasses to examine the document more closely before telling Trump that it included the cost of another building that had been completed five years ago.
“It’s part of the overall work,” Trump said.
“It’s not new,” Powell responded.
Trump insists interest rates are the issue, not renovation
Trump insisted that the main concerns he has with Powell are over the Fed not lowering interest rates, telling reporters that the renovation cost at headquarters was less important.
“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. And more importantly, they have to get interest rates down,” Trump said.
“We want to get the rates down and want to get the Fed building finished. So, I met with the contractors and we toured it with the chairman and we had a very good tour and we’ll talk to you about it sometime and Tim and I, we sort of understand what happened,” Trump continued, without elaborating.
Scott replied: “Too expensive. Bottom line is this, Americans deserve to become first time homebuyers.”
Following the visit, Trump took to Truth Social, where he said of the renovation: “It is what it is.”
“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! I’ll be watching and, hopefully, adding some expertise,” Trump posted.
During the visit, Trump said it felt good to be back at a construction site – harkening back to his career as a real estate developer before running for president.
Trump also punted when asked if he’s seen mismanagement of the renovation, calling it a “luxurious situation” but he added that if he were in charge, he would have handled the project differently.
“Theres always Monday morning quarterbacks, I don’t want to be that. I want to help them get it finished, it’s been going on for years and I want to help them get it finished,” he added.
Earlier in the visit, Trump and Powell shared a laugh when a reporter asked if there was anything Powell could say to him to make him back off his criticism.
“Well, I’d love for him to lower interest rates. Other than that, what can I tell you?” he said.
