Bloomberg Businessweek Instant Reaction: Trump, Powell Discuss Rates, Clash on Cost of Fed Renovations
Jul 24, 2025
Tensions rise as Donald Trump and Jerome Powell clash during a tour of the Federal Reserve's renovation, with Trump pushing for lower interest rates. The discussion reveals differing economic policies, highlighted by Trump's critique of costly overruns. Expert commentary uncovers the subtle dynamics between the White House and the Fed, and the unique pressures faced by Powell under intense presidential scrutiny. Amid playful jabs and serious implications, the conversation explores the delicate balance of power in monetary policy.
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Fed Renovation Cost Dispute
- The Federal Reserve renovation project faced public scrutiny over cost overruns and disagreement on figures between Trump and Powell.
- Powell clarified extra costs included a building renovated years ago, highlighting transparency issues in public projects.
Powell Pushes Back Publicly
- Jerome Powell publicly contradicted President Trump during the Fed renovation tour, illustrating real tension.
- Such direct pushback to a sitting president by a Fed chair is rare and notable.
Trump Pushes Lower Rates Yet Softens
- President Trump toned down direct confrontation during the Fed tour but reiterated his desire for lower interest rates.
- The administration continues to try influencing independent Fed decisions despite official stance on autonomy.