President Trump recently made headlines by visiting the Federal Reserve Headquarters on July 24, 2025, where he toured a controversial $2.5 billion renovation project and pressed Fed Chair Jerome Powell to lower interest rates—calling him "a very good man" afterward and saying he “would love him to lower interest rates.”

🧨 Key takeaways:

1. Strong signal, but no commitment from Powell

Trump said Powell praised the economy and that he “got the impression that … he’s going to start recommending lower rates.”

However, Powell himself has emphasized no immediate change, citing inflation and uncertainty—especially related to Trump’s trade policies.

2. Rate outlook remains unchanged—for now

Federal Funds Rate is still expected to stay in the 4.25%–4.50% range at the upcoming policy meeting.

Markets assign about a 61.8% probability of a rate cut by September, but no cut is expected in the next policy cycle.

3. Political theater vs. Fed independence

Trump publicly called the renovation wasteful and previously called Powell a “numbskull.”

However, Powell has maintained the Fed's independence and does not plan to resign or be fired.