President Donald Trump visited the Federal Reserve and called for sharp interest rate cuts to boost the U.S. economy, criticizing the ongoing costly Fed building renovation. He emphasized that lower rates would unlock trillions in economic benefits and make housing affordable for first-time buyers. Trump also touted trade wins with Japan and other countries, while suggesting the U.S. is now the world’s “hottest economy.”
Trump Pushes for Lower Interest Rates During Federal Reserve Visit
President Donald Trump, in a highly publicized appearance at the Federal Reserve headquarters, once again doubled down on his call for a significant reduction in interest rates. Speaking in front of reporters and top Senate allies, the President emphasized that Americans—especially young couples and first-time homebuyers—are being unfairly locked out of homeownership due to elevated borrowing costs.
He also took aim at the Federal Reserve’s costly building renovation project, expressing dissatisfaction over construction overruns and questionable design decisions, while vowing to get the project completed more efficiently.
Trump’s Core Message: Cut Rates Now
Trump’s central message revolved around monetary policy. “We should have the lowest interest rates of any country,” Trump said, claiming that high rates are the only thing preventing the U.S. from launching into explosive economic growth.
He stated that every percentage point in rates is worth $365 billion to the U.S. economy, and a 3-point cut could save over $1 trillion annually. “You wouldn’t be cutting the cost of anything, not building anything — just a move of the hand saying we will lower interest rates,” he said.
According to Trump, despite America’s economic strength, the high rate environment is constraining the full potential of the economy. “As good as we are doing, we would be like a rocket ship with lower rates,” he added. He also suggested that current monetary policy is harming the housing market by pricing out otherwise qualified buyers.
Frustration With Fed Renovation Overruns
A significant portion of Trump’s remarks were focused on the ongoing and expensive renovation of the Federal Reserve building. Touring the site with Chairman Jerome Powell and contractors, Trump criticized the decisions made during construction — including building underground parking and a “reverse bathtub” to block water — calling them costly and unnecessary.
“I built a massive hotel in Washington D.C. for $200 million — top fixtures, marble bathrooms — and it was a bigger job than this. This project is out of control,” he said, comparing it to his own past experience as a developer.
He also noted that expensive plywood coverings and water protection measures could have been handled more conservatively. “Millions of dollars just for protection,” he remarked. “Things could have been different.”
Despite the criticisms, Trump said he wants to help finish the project quickly. He praised those involved but underscored the importance of financial prudence in federal construction.
Powell and Policy Direction
On his meeting with Federal Reserve Chair Jerome Powell, Trump noted that the atmosphere was cordial and there was “no tension.” However, he was quick to emphasize that the Fed’s current path needs to change. He believes that Powell will eventually “do the right thing,” even if it may be late.
When asked if he had a replacement in mind for Powell, Trump replied he had “two, maybe three” names in mind but added that he still believes Powell has a chance to act appropriately.
Trump also pointed to global central banks—especially in Europe—that have reduced interest rates multiple times while the Fed has held steady. “They’ve lowered 11 times; we’ve lowered zero,” he said.
Japan Trade Deal and Tariff Talks
In a broader commentary on international trade, Trump touted a $550 billion deal with Japan as a model for future negotiations. He said Japan not only lowered its tariffs but paid an upfront amount, which he called a “signing bonus.” The deal reportedly opened the Japanese economy more broadly to American businesses.
“They gave us $550 billion upfront and opened their economy — a better win than the tariffs alone,” he said.
Asked if similar deals could be expected with other countries, Trump signaled openness. “I would let other countries,” he said. “We’re making great deals — Indonesia, the Philippines, unbelievable deals. The money is pouring in.”
NATO and U.S. Global Standing
Trump also took a moment to highlight what he views as the resurgence of U.S. influence under his administration. He cited NATO’s agreement to pay 5% toward Ukraine and mentioned positive remarks from global leaders.
“The King of Saudi Arabia said, ‘You have the hottest country in the world,’” Trump said. “One year ago, they thought we were dead. Now they say we’re knocking it out of the park.”
Closing Remarks: “Do the Right Thing”
Trump concluded by reinforcing the urgency of monetary policy action. “Everybody knows what the right thing is,” he said. “Even people who used to believe in high interest rates want to see them come down now.”
The visit and press event were designed to amplify pressure on the Federal Reserve and further Trump’s message that, with one final push—lower interest rates—the U.S. economy could unlock its full growth potential.
While Powell has yet to indicate any dramatic rate cuts in the immediate future, Trump’s messaging was clear: the time to act is now.