President Donald Trump and South Carolina Sen. Tim Scott, a Republican, used a visit to a Federal Reserve renovation site on Thursday to talk about the need to lower interest rates.
“So I met with the contractors, we toured it with the chairman, and we had a very good tour, and we’ll talk to you about it sometime, but Tim and I sort of understand what happened,” Trump said after a tour led by Federal Reserve Chairman Jerome Powell.
Scott said Americans need lower interest rates to become first-time homeowners.
“Americans deserve to become first time home buyers,” Scott said. “President Trump has created the best economy in the world. The one thing that would make it better is lower interest rates.”
Trump added: “The one thing we have to do is get housing prices down and the interest rates down so people can buy the house, because they’re all making money, but they can’t get the interest rate down.”
The comments came after Trump brought a team of allies and construction professionals to tour an over-budget renovation project at the Federal Reserve buildings in Washington D.C.
Trump met with Powell at the site. The president brought along Scott, R-S.C., U.S. Sen. Thom Tillis, R-N.C., Office of Management and Budget Director Russell Vought and Federal Housing Finance Agency boss Bill Pulte at the Federal Reserve project site. Also joining them were Trump’s appointees to the National Capital Planning Commission, the federal government’s central planning agency for the National Capital Region, James Blair and Will Scharf.
Trump also said “various other construction professionals” would be joining the tour of the renovation projects, which were estimated to cost $1.9 billion in 2023. The project now stands and $2.5 billion after issues with the high water table, asbestos and toxic contamination in the soil.
Trump put the figure even higher in a Truth Social post on Thursday.
“Getting ready to head over to the Fed to look at their, now, $3.1 Billion Dollar (PLUS!) construction project,” Trump wrote on his social media platform.
After the meeting Trump called it “luxurious,” but didn’t mention fraud.
Powell said Thursday at the meeting that he doesn’t expect additional cost overruns on the project, which the Federal Reserve has defended as cost-conscious and responsible renovations to historic buildings located on the National Mall. He also shook his head at Trump’s $3.1 billion cost estimate.
“Construction involving the preservation of historic spaces requires specialized processes and methods, which are generally more complex and have increased costs compared with new construction or renovation of spaces that are not historically significant or located on the National Mall,” according to the Federal Rerserve’s new frequently-asked-questions page that focuses on the remodel.
Powell said Thursday the project should be finished by 2027.
A reporter asked Trump, who made his name in real estate, what he’d do with a contractor who was over budget on a project. Trump said that normally he’d fire a project manger for going over budget. However, the president declined to comment directly on Powell.
“Well, I’m here just really with the chairman,” Trump said. “He’s showing us around, showing us the work. And so I don’t want to get into that. I don’t want to be personal. I just would like to see it get finished.”
Trump also said he’d like to see Powell lower interest rates during the meeting with Powell and reporters at the project site.
The visit comes amid Trump’s “nasty” pressure campaign to get Powell and the Federal Open Market Committee to lower interest rates. The Fed has taken a wait-and-see approach on interest rates, citing Trump’s broad-based reciprocal tariffs as a reason for caution.
Trump previously called Powell to the White House for a meeting. After that May meeting, Powell issued a rare statement saying that FMOC decisions would be based “solely on careful, objective, and non-political analysis.”
Since returning to the White House for his second term, Trump has called Powell every name in the book. One of the president’s favorites for Powell has been “numbskull.” He’s also given Powell the nickname “Too Late” for not cutting interest rates as fast as Trump would like.
Powell has largely ducked Trump’s criticism. When Trump criticized cost overruns on the remodel, the Fed Chairman referred the matter to the central bank’s inspector general.
Last week, Trump said he wasn’t planning to fire Powell, but kept the option on the table.
“We’re not planning on doing anything,” Trump told reporters at the White House.
Later, the president added, “I don’t rule out anything, but I think it’s highly unlikely, unless he has to leave for fraud.”
The fraud remark referred directly to the renovation project. The Fed is a self-funded, quasi-private institution. The president picks its members in staggered terms with Senate confirmation.
Trump has wanted to fire Powell for years, but hasn’t taken action.
