President Donald J. Trump emerged from a closely watched meeting with Federal Reserve Chair Jerome Powell on Thursday reportedly expressing optimism that interest rate relief may finally be on the horizon, after years of warning that Powell’s tight monetary policy has hindered American growth.
“I think we had a very good meeting on interest rates,” Trump told reporters outside the White House before heading to Scotland. “[Powell] said to me — now I don’t know if he’s going to say this … on what day he speaks — he said to me very strongly, ‘The country is doing well.’ He said, ‘Congratulations, the country is doing really well.’”
For the President, the message was clear: “I got that to mean that I think he’s going to start recommending lowering rates.”
Trump’s readout of the meeting marks a potential turning point in what has often been a rocky relationship with the Fed chair. Despite repeated frustrations with Powell’s hesitancy to reduce borrowing costs, Trump said he now believes Powell may be coming around — though not quickly enough.
The Federal Reserve is set to meet next week, but Powell has signaled to Congress that a rate cut in July is unlikely due to economic uncertainties, including the impact of Trump’s America First tariffs.
Still, the President hasn’t forgotten past grievances. Trump has previously labeled Powell one of the “most destructive” figures in Washington and hinted at replacing him — something no president has ever done.
More recently, Trump said he would let Powell serve out his term, which ends in 2026, before making a new appointment.
Trump also took the opportunity to scrutinize federal spending, specifically highlighting ballooning costs at the Federal Reserve’s headquarters renovation — a topic that quickly escalated during his tour of the site with Powell.
As the two men stood before the cameras, Trump pointed out that the cost of the renovation had soared to $3.1 billion, handing Powell a document breaking down the numbers.
Powell, appearing momentarily surprised, replied, “You just added in a third building.” To which Trump responded, “It’s part of the overall work.” Powell countered, “It’s not new.”
Despite Powell’s pushback, the administration stood firm. Mark Paoletta, General Counsel at the Office of Management and Budget, backed the President’s figures: “President Trump is 100% correct in the numbers he used on his tour of the Federal Reserve site yesterday,” he said Friday, offering a detailed cost breakdown.
Trump later took to Truth Social to again urge Powell to lower interest rates, reinforcing his long-held belief that American families and businesses would benefit from looser monetary policy — especially as inflation cools and construction costs rise.
With Powell reportedly acknowledging the country’s economic strength, the President’s allies say it’s time the Fed stop standing in the way. As Trump continues to emphasize economic growth as a key theme of this presidency, all eyes will be on the Fed’s decision next week.
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