WASHINGTON – President Donald Trump said Friday that he expects Federal Reserve Chairman Jerome Powell to soon start lowering interest rates after their meeting at the Fed on Thursday.
Trump spoke highly of his meeting with Powell, which included a tour of ongoing over-budget renovations.
“I think we had a very good meeting, forgetting about the building; that’s out of control. But I think we had a very good meeting on interest rates,” Trump said.
“He said to me very strongly, ‘The country is doing well.’ He said, ‘Congratulations, the country is doing really well,’ and I got that to mean that I think he’s going to start recommending lower rates,” Trump said.
Trump has criticized Powell for being “too late” on interest rate cuts over recent months as the Fed has taken a wait-and-see approach in light of Trump’s tariff policies. But months of low inflation suggest Trump’s tariffs are not having adverse effects on the economy, and the president has repeatedly called on Powell to lower rates.
While touring the construction of the building, Trump fielded questions from reporters while flanked by Powell. One reporter asked Trump if Powell could do anything that would make Trump rein in his criticism of the Fed chairman.
“Well, I’d love him to lower interest rates,” Trump quipped as he slapped Powell on the back, causing him to chuckle.
Trump also said the cost overrun on the Federal Reserve renovations, which he pegs at a $3.1 billion price tag that ballooned far above the estimated $1.9 billion cost for the project in 2021, is not a fireable offense.
“As a real estate developer, what would you do with a project manager who would be over budget?” a reporter asked Trump.
“Generally speaking? What would I do? I’d fire him,” Trump responded.
Another followed up, asking if he believed the overruns gave him “cause” to do so.
“Well, I’m here just really with the chairman. He’s showing us around, showing us the work, and so I don’t want to get that — I don’t want to be personal. I just would like to see it get finished,” Trump said.
The next Federal Open Market Committee is set for next Tuesday and Wednesday.
