President Donald Trump made a rare visit to the Federal Reserve’s headquarters on Thursday, intensifying pressure on the central bank and its leadership days before a key interest rate decision.
The visit comes against a backdrop of heightened criticism from the White House over both monetary policy and the Fed’s management of building renovations.
A rare presidential visit ahead of rate decision
The White House confirmed late Wednesday that President Trump would visit the Fed’s Washington headquarters on Thursday.
While the central bank acknowledged the visit, it did not specify whether Trump would meet directly with Fed Chair Jerome Powell.
The timing is notable, as the Fed’s 19-member policy committee is scheduled to meet next week to determine the direction of interest rates, with most analysts expecting no change from the current 4.25%-4.50% range.
Trump’s visit marks a rare occasion in modern history for a sitting president to visit the central bank.
The last comparable visit occurred in 2006 when President George W. Bush attended Ben Bernanke’s swearing-in.
Trump’s engagement is further complicated by his long-standing public criticism of Powell, whom he once again disparaged earlier this week, calling him a “numbskull.”
Although Trump has floated the idea of firing Powell in the past, he has repeatedly stated he does not intend to do so.
Powell, originally appointed by Trump in 2018 and reappointed by President Biden, typically spends the Thursday before policy meetings on preparatory calls with regional Fed presidents.
White House criticism extends beyond interest rates
In recent weeks, White House officials have escalated their scrutiny of the Fed beyond monetary policy.
A renovation project involving two historic buildings at the Fed’s Washington campus drew scrutiny from the White House.
The White House budget director, Russell Vought, cited cost overruns of more than $700 million, accusing the Fed of poor financial oversight.
Treasury Secretary Scott Bessent also called for a review of the central bank’s non-policy operations, pointing to operating losses in recent years.
The Fed responded with documentation explaining that the century-old buildings required extensive updates, including the abatement of toxic materials and unanticipated labor and material costs.
In letters to lawmakers, the Fed defended the renovation as necessary and ultimately in the public interest.
Senate Banking Committee Chair Tim Scott sent a letter to Powell on Wednesday requesting detailed information about the renovation.
Scott, along with other administration officials, including White House Deputy Chief of Staff James Blair, participated in Thursday’s visit.
Markets calm but watchful as Fed independence scrutinized
Market reaction to the visit was muted. Yields on 10-year Treasury bonds edged higher after a positive jobless claims report, while US equities remained mostly higher during the day.
However, the broader concern among economists and global institutions centers on the perception of the Fed’s independence.
Former Fed Chairs Janet Yellen and Ben Bernanke penned an op-ed in The New York Times this week, emphasizing the critical importance of an independent central bank that makes decisions based on data rather than political pressure.
Speaking to the press, IMF spokesperson Julie Kozack underscored that central bank independence remains essential to maintaining inflation credibility globally.
Republican Senator Mike Rounds echoed this sentiment, calling Powell’s independence “critical for the markets.”
Trump’s visit, while symbolic, has reignited debate over the appropriate boundaries between the executive branch and the nation’s central bank at a time when both political and economic stakes remain high.
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