Trump said he discussed interest rates with Fed Chairman Powell, saying “the conversation was very effective.”
Trump said he hopes Powell can lower interest rates. If the interest rate is lowered by three percentage points to one percentage point, the United States can save more than one trillion US dollars. He will observe how the committee sets interest rate rules.
Trump said that it would be a big move regarding the firing of Federal Reserve Chairman Powell.
In addition, Trump mentioned data on renovation projects. Powell said the renovation is expected to be completed by 2027. Trump said he usually fires project managers who are over budget.
US stocks rose and fell mixed on the day, with the Dow Jones Industrial Average falling more than 300 points, and the Nasdaq and S&P 500 hit new highs. As of the close, the Dow Jones Industrial Average fell 0.7% to 44,693.91 points, the S&P 500 rose 0.07% to 6,363.35 points, and the Nasdaq rose 0.18% to 21,057.96 points.
According to US media reports, on July 24 local time, Trump visited the US Federal Reserve. ABC pointed out that this is the first time that the current US president has officially visited the Federal Reserve in nearly 20 years. The New York Times previously reported that under normal circumstances, the US president will not visit the Federal Reserve as an official capacity to reflect the Federal Reserve’s tradition of “independence” from the White House.
During the visit, Trump and Fed Chairman Powell wore white hard hats and visited the building renovation project that cost about $2.5 billion. Then, Trump stood beside Powell and answered media questions and reiterated his call for lowering interest rates.
A reporter asked Trump what he would do as a real estate developer if the project manager allowed the cost to exceed the budget. Trump replied: “What would I do in general? I would fire him.”
According to CNBC, Trump also hinted that he seemed to give up on the consideration of firing Powell. “It’s a big move and I just don’t think it’s necessary. I believe he will do the right thing.”
When a reporter asked Powell if he could say anything that made Trump give up criticism, Trump said, “Okay, I hope he lowers interest rates.”
Later that day, Trump appeared to have adopted a “more reconciliational tone”, and he wrote on social media that it was an “eunty” to visit with Powell.
“There is still a long way to go,” Trump wrote. “Cost overruns are huge, but on the positive side, our country is doing well and can afford almost anything – even the cost of this building!”
The Trump administration has repeatedly criticized the renovation of the Federal Reserve Building as “too luxurious”, and the US media believes that the move seems to be a legitimate reason for removing Powell from office. Trump mentioned Powell to media reporters earlier this week: “I don’t think he’s doing a good job, but he’s going to step down anyway.”
At present, the White House has launched an investigation process to overpay renovation costs” of the Federal Reserve headquarters, and the Presidential Administration and Budget Bureau will take the lead in conducting an audit and evaluation. The president’s economic team believes that the renovation project, which was originally scheduled to cost $1.9 billion, but overall costs have soared to about $2.5 billion, “lack of transparency”, questioned its budget management level and hinted that Powell would be held accountable on this ground.
