Trump presses for rate cut during Fed visit

WASHINGTON — US President Donald Trump locked horns with Federal Reserve Chair Jerome Powell during a rare presidential visit to the US central bank on Thursday. The president criticized the cost of renovating two historical buildings at the Fed headquarters, while pressing the case for lower interest rates.

Trump, who called Powell a "numbskull" earlier this week for failing to heed the White House's demand for a large reduction in borrowing costs, wrapped up his visit to the Fed's $2.5 billion building project in Washington by saying he did not intend to fire Powell, as he has frequently suggested he would.

"To do so is a big move and I just don't think it's necessary," Trump told reporters after the visit.

In a post on his Truth Social media site, Trump later said of the renovation, "It is what it is and, hopefully, it will be finished ASAP. The cost overruns are substantial but, on the positive side, our Country is doing very well and can afford just about anything."

The visibly tense interaction at the Fed's massive construction site marked an escalation of White House pressure on the central bank and Trump's efforts to get Powell to "do the right thing" on rates. It happened less than a week before the central bank's 19 policymakers are due to gather for a two-day rate-setting meeting, where they are widely expected to leave their benchmark interest rate in the 4.25-4.50 percent range.

The president has repeatedly demanded that Powell slash rates by 3 percentage points or more.

"I'd love him to lower interest rates," Trump said as he wrapped up the tour, as Powell stood by, his face expressionless.

The encounter between the two men became heated as Trump told reporters that the renovation project was now estimated to cost $3.1 billion.

"I am not aware of that," Powell said, shaking his head. Trump handed him a piece of paper, which Powell examined. "You just added in a third building," the Fed chief said, noting that the Martin Building had been completed five years ago.

Elevated by Trump to the top Fed job in 2018 and then reappointed by former president Joe Biden four years later, Powell last met with the current president in March when Trump summoned him to the White House to press him to lower rates.

The visit on Thursday took place as Trump battles to deflect attention from a political crisis over his administration's refusal to release files related to convicted sex offender Jeffrey Epstein, reversing a campaign promise.

Agencies via Xinhua