Trump hails ‘good meeting' with Jerome Powell over interest rates
Trump said on Friday that he and Jerome Powell had spoken privately about interest rates, which the president says should be lowered immediately to boost the economy.
'We had a very good meeting … I think we had a very good meeting on interest rates,' Trump told reporters.
The Fed is widely expected to leave its benchmark interest rate in the range of 4.25 per cent to 4.5 per cent at the conclusion of a two-day policy meeting next week.
During a visit to the Fed on Thursday, Trump criticised the cost of renovating two buildings at its headquarters in Washington that were built nearly a century ago and continued to press for lower interest rates.
The encounter between them became heated after Trump told reporters that the project was now estimated to have cost $3.1 billion, significantly above the Fed's official estimate of $2.5 billion.
'I am not aware of that,' Powell said, shaking his head.
Trump handed him a piece of paper, which Powell examined. 'You just added in a third building,' the Fed chief said. He said Trump had included the cost of renovating the Martin Building, which was done five years ago and is not part of the present project.
Russell Vought, the White House budget director, and James Blair, Trump's deputy chief of staff, who have spearheaded criticism of the renovation as overly costly and ostentatious, later told reporters that they still had questions about the project.
Trump, who called Powell a 'numbskull' this week for failing to heed the White House's demand for a large rate cut, wrapped up his visit by saying he did not intend to fire Powell, as he has frequently suggested he would.
'To do so is a big move and I just don't think it's necessary,' Trump said after the visit.
In a post later on Truth Social, Trump said of the renovation: 'It is what it is and, hopefully, it will be finished ASAP. The cost overruns are substantial but, on the positive side, our country is doing very well and can afford just about anything.'
The president has repeatedly demanded that Powell slash rates by three percentage points or more. His criticism of Powell and his comments about firing him have previously rattled financial markets.
'I'd love him to lower interest rates,' Trump said as he wrapped up the tour, as Powell stood by, his face expressionless.
Powell typically spends the Thursday afternoon before a rate-setting meeting doing back-to-back calls with Fed bank presidents as part of his preparations for the session.
The visit came as Trump battles to deflect attention from a political crisis over his administration's refusal to release files related to the late convicted sex offender Jeffrey Epstein, reversing a campaign promise.
The Federal Reserve said on Friday it was 'grateful' for Trump's encouragement to complete a renovation of two buildings at its headquarters in Washington and that it 'looked forward' to seeing the project through to completion.
'We remain committed to continuing to be careful stewards of these resources as we see the project through to completion,' it said in a statement.
'The Federal Reserve was honoured to welcome the president yesterday for a visit to our historic headquarters,' the Fed said.
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