Trump’s Fed Pressure Backfires: The More He Pushes, the Less He Gets Lower Rates

President Trump visited the Federal Reserve on July 24, 2025, spotlighting the $2.5 billion renovation project and demanding major interest rate cuts

He has repeatedly urged Fed Chair Powell to slash rates by up to 3 percentage points to ease housing and debt burdens

Trump criticized cost overruns, claiming the Fed spent $3.1 billion. Powell disputed the figure, saying Trump included a separate building

It was the first presidential visit to the Fed in nearly 20 years, signaling a clear escalation of political pressure

Despite Trump’s demands, the Fed is expected to keep rates at 4.25%–4.50% at its July meeting, citing inflation risks and economic stability

Trump’s threats to fire Powell and public criticism unsettled markets and pushed up long-term Treasury yields

Analysts warn that undermining Fed independence can raise inflation expectations and borrowing costs