Trump and Powell Clash Over Fed Renovation and Interest Rates

President Donald Trump visited the Federal Reserve, confronting Chair Jerome Powell over the soaring costs of renovating its headquarters and pushing for a reduction in interest rates. The rare visit saw Trump criticize the $3.1 billion project as overly expensive, although he later acknowledged the nation's ability to afford such expenses.

The encounter, marked by tension, underscored an escalating pressure from the White House, with Trump insisting Powell reduce rates by 3 percentage points. The meeting occurred just ahead of the Fed's policy-setting session, where no change in the benchmark rate is expected.

Senate Banking Committee Chair Tim Scott joined the tour of the construction site, which revealed elaborate security features contributing to high costs. Trump's criticism of Powell comes as the president deals with political issues concerning the Jeffrey Epstein files, highlighting the strain on Fed independence amid political influences.

(With inputs from agencies.)