Yeliz Akmaca 
On July 24, 2025, U.S. President Donald Trump held a significant meeting with Federal Reserve Chair Jerome Powell. Trump emphasized the need to lower interest rates and urgently bring down housing prices. He stated that the meeting was productive and free of any tension.
During the meeting, Donald Trump pointed out that the renovation costs of the Fed’s headquarters in Washington had risen from $2.5 billion to $3.1 billion. Powell, however, argued that Trump had misjudged some of the cost calculations. Trump remarked that in the private sector, a project manager would be dismissed under such circumstances.
Donald Trump also said that Powell had experienced more tension with Senator Tim Scott than with him, noting that there was no such friction between himself and Powell. According to Trump, Powell told him that the country’s economic situation was “actually good.”
Interest Rates and the Housing Market
Donald Trump stated that high interest rates and housing prices are putting pressure on the economy. He emphasized that this creates significant market risk and must be resolved quickly. He said he had an in-depth discussion with Powell on interest rate policy.
Powell reportedly told Trump that the tariffs imposed during his presidency contributed to rising prices, which delayed interest rate cuts. This situation directly impacts the Fed’s monetary policy decisions and market expectations.
When asked if the Fed’s recent budget overrun could be grounds for Powell’s dismissal, Trump replied, “I don’t want to put it in that category. Costs got out of control — these things happen.” He added that he believes Powell will make the right decisions.
Powell’s Position and Potential Changes
Donald Trump made it clear that there was no pressure on Powell to resign. Regarding a possible replacement, he said, “I have someone in mind to replace Powell — maybe even three people.” However, he stressed that there’s no need for a major move like a dismissal. He also noted that Powell’s term ends in May 2026.
These statements are closely watched by the markets in terms of the Fed’s independence and Powell’s future. Trump also said he received positive information about the overall state of the economy.
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