Federal Reserve Chairman Jerome Powell was asked on Wednesday about President Donald Trump’s recent visit to the renovation site of the central bank’s buildings in Washington, D.C.
A reporter asked Powell about Trump’s visit shortly after the Fed held interest rates steady for a fifth consecutive meeting.
Powell said it was “not for me to say” whether Trump’s visit was tied to the president’s demand that the central bank cut interest rates, but added that he had a “nice visit” with Trump.
Why It Matters
Powell has been under intense pressure from Trump and other administration officials to slash interest rates but has resisted their demands.
Wednesday’s vote on the rates was held after an unusually contentious policy battle, with two members of the Board of Governors dissenting from the majority decision.
Julia Demaree Nikhinson/AP
What to Know
During a news conference following Wednesday’s decision on interest rates, a reporter pressed Powell on Trump’s recent visit to the Fed renovation site, asking Powell if he believed the visit was “directly tied” to Trump’s demands that the central bank cut interest rates.
“Not for me to say,” Powell replied.
But he added: “I will say we had a nice visit with the president. It was an honor to host him.”
“It’s not something that happens very often at the Federal Reserve, to have the president come over, let alone to visit a building,” Powell said. “But it was a good visit.”
The visit last week resulted in a dubious back-and-forth between Trump and Powell over the final cost of the endeavor.
Trump claimed the cost of the project had reached $3.1 billion while Powell shook his head in disagreement.
“I haven’t heard that from anybody at the Fed,” Powell said. He then took the document Trump was holding that detailed the cost breakdown and said the figure the president was citing included another building whose construction was completed five years ago.
Powell’s comments on Wednesday about his meeting with Trump came after the central bank held interest rates at 4.25 percent to 4.5 percent.
What People Are Saying
Chris Zaccarelli, chief investment officer for Northlight Asset Management, told Newsweek: “For the first time in 28 years we had two Governors dissent and markets barely budged when the statement was released at 2pm, because both of the Governors voting to cut rates today were widely expected to do so.
“In addition, despite the Fed statement giving little new information to investors, Chairman Powell dropped some hints in his press conference that a rate cut was more likely at the next meeting in September, saying ‘most measures of longer-term expectations remain consistent with their 2% inflation goal’ and that a reasonable assumption is that inflation from tariffs will be ‘short-lived, reflecting a one-time shift in the price level.'”
The Fed said in a statement Wednesday: “In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.”
What Happens Next
The next meeting on interest rates will occur in September. Powell was asked on Wednesday whether he anticipates a rate cut at that time but declined to answer, saying it will depend on the economic outlook.
Trump, for his part, told reporters: “I hear they’re going to do it in September.”
Update 7/30/25, 3:29 p.m. ET: This article has been updated with additional information and comments.
