Trump, Fed Chair Powell Maintain Standoff Over Interest Rates, Inflation

President Trump has been vocally pressing Federal Reserve Chair Jerome Powell to lower interest rates, citing concerns about high borrowing costs and the impact on housing affordability. Despite earlier harsh criticisms, including calling Powell a 'numbskull,' Trump recently indicated a more conciliatory tone after their meeting, stating he does not plan to fire Powell and expressing hope that Powell will 'do the right thing.' The dispute highlights a broader tension between populist political pressures and the Federal Reserve's independent, expert-driven approach to monetary policy, especially given concerns about inflation and the effects of tariffs. Trump has also criticized the rising costs of the Federal Reserve building renovation, which Powell attributed to increased material and labor costs, adding another layer to their disagreements. While Trump demands significant rate cuts, financial markets currently price in only modest chances of reductions in the near term, reflecting skepticism about the feasibility and timing of such moves. Overall, the relationship between the Trump administration and the Fed remains fraught but shows signs of cautious engagement amid ongoing debates over economic policy.