July 24, 2025 • 17 mins
Donald Trump downplayed jostling with Federal Reserve Chairman Jerome Powell over cost overruns during a tour of the central bank’s renovation project, even as he used the interaction to again push for lower interest rates.
After a tour that saw Trump and Powell publicly trade barbs over the cost of the project, Trump maintained there was no tension with the Fed chief and indicated that problems with the project probably weren’t reason enough to fire the central bank head.
But the remarkable tour still saw the president joke that he might ordinarily fire a project manager who oversaw similar cost overruns and again rib Powell — who for months has faced presidential criticism — over interest rates.
For instant reaction and analysis, hosts Carol Massar and Tim Stenovec speak with:
- Bloomberg News senior editor Wendy Benjaminson
- Bloomberg News Federal Reserve Reporter Jonnelle Marte on President Donald Trump's visit to the Federal Reserve and Chairman Jerome Powell
See omnystudio.com/listener for privacy information.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio news. This is a breaking
news update from Bloomberg instant reaction and analysis from our
three thousand journalists and analysts around the world.
Speaker 2 (00:20):
It looks like it's about three point one billion, one
up a little bit or a lot. So the two
point seven is now three point one.
Speaker 3 (00:29):
Yeah, it just came out. Yeah, I haven't heard that
from anybody to feed.
Speaker 4 (00:35):
I just came out.
Speaker 3 (00:39):
I no side about three point one o'clock.
Speaker 2 (00:43):
Two.
Speaker 3 (00:43):
This game from us. Yes, I don't know who does that.
Speaker 4 (00:49):
You're including the Martin renovation.
Speaker 1 (00:51):
You just added retire capital. You just you just added
in a third building.
Speaker 3 (00:54):
Is what that is. That's a third building.
Speaker 2 (00:56):
It's a building that's being built.
Speaker 4 (00:58):
And it's been it was built five years ago.
Speaker 3 (01:01):
We finished Martin five years old, and the field as
part of the overall so new.
Speaker 4 (01:06):
We are, of course, just seeing a live shot and
hearing from President Trump and Fedchair J. Powell at the
construction site at the Federal Reserve in Washington, d C.
The President making some brief comments about the work and
construction that's being done at the Federal Reserve. He's been
somewhat critical about the costs and what he sees as
(01:28):
cost overruns, and a little bit of a back and
forth between the FED Chair and the President when it
comes to the cost, the FED Chair saying specifically that
was an inclusion of a third building where work had
already been done on. So kind of interesting to see
the back and forth. We did also see the President
being asked about taking back maybe some of the criticism
(01:49):
of FED Chair J. Powell. He didn't really want to
go into it, but he did also once again say
something he has said many times, and that is he
would like to see the FED cut interest rates.
Speaker 1 (01:59):
Yes, specifically, I want to go back to this idea
of the different numbers that have been discussed. Three point
one billion dollars is what the President just said is
the cost of this construction project. He said this in
a truth Social post too, just about at about three
point forty one Wall Street time earlier. That number coming
as a surprise to the Chairman of the Federal Reserve.
(02:19):
As you just mentioned, Carroll, he took out The President
took a piece of paper out of his pocket, handed
it to the FED Chair, who shook his head repeatedly
and said, no, no, this includes another building. We finished
that building five years ago.
Speaker 4 (02:31):
Yeah, exactly, so.
Speaker 1 (02:32):
Some real time disagreement about the figures that have been
discussed here exactly.
Speaker 4 (02:37):
We should also point out because trade is certainly front
and center here investors care. President Trump was asked about
some trade agreements, and he said that they're doing well
with the European Union and then again repeated that he
wants to see US interest rates come down. There that
as the FED chair was standing beside him. Let's get
to Wendy Benjaminson. I do feel like sometimes there are
(03:00):
moments in our history that will stay with us.
Speaker 1 (03:03):
That picture iconic of the two of them standing there
with hard huts on.
Speaker 4 (03:06):
Totally, Totally. Wendy of course, senior editor at Bloomberg new
she's out there in our Washington DC bureau. I have
to say, Wendy, Tim and I were looking at herself,
our kind of mouths open. Walk us through what we
just saw.
Speaker 2 (03:19):
Well, first, just the fact that the president toured a
construction site of what is, you know, a fairly routine
renovation of a building built in the nineteen thirties, that
he would tour it was extraordinary in itself. The fact
that he and Powell were standing shoulder to shoulder when
clearly they are at odds right now about just about
(03:41):
everything that Powell is doing. And then that extraordinary moment
you were just talking about, where Trump is speaking, The
President is speaking and saying what he believed the cost
of the renovation to be, or at least what he
said the cost of renovation to be, and Powell just
starts shaking his head like crazy, saying, no, that's not right,
which is unusual, but he's perfectly within his rights to
(04:04):
do that, and pointed out that the extra billion or
so that Trump mentioned was for a building that was
completed several years ago. And Trump said, well, it's part
of the overall project, but it was completed, it was done.
I mean, this is the buildings that have irked President
Trump and Senator Scott, who was there with them, you know,
(04:26):
are I think it's around two billion, two and a
half billion.
Speaker 1 (04:30):
One person who is set to be there today. The
President sending a missing in a post on true socialist
Bill Poulty, who is his appointees to the National Capital
Planning Commission, but also overseas Fanny and Freddie.
Speaker 2 (04:44):
And I'm just.
Speaker 1 (04:46):
Wondering how you view his role in all of this,
because he's been so outspoken with his criticism of FED
Chair J. Powell, and it seems like he's also served
as a sort of person who's tried to communicate those
frustrations to a wider audience, including lawmakers in Washington, d C.
Speaker 2 (05:06):
What is his role here, Well, you've described it very aptly,
his role as one of Trump's team. A lot of
you know, a lot of these loyal Trump appointees will
seize an opportunity to take on the role as sort
of the Greek chorus for Trump. You know, he can
post on True's social and he says things, but then
(05:26):
you have this sort of chorus behind him of guys
like Bill Poulty or Senator Scott or you know, whoever
else it is at the moment. Sometimes it's Treasury Secretary
Scott mess and sometimes it's Commerce Secretary Howard Lenningk and
they just sort of step a little bit outside their
roles to act simply as an ally of the president
and able to take a case on that he wants
(05:47):
to take on. This is a little unusual because, as
you noted this, Bill Poulty runs Fanny and Freddy, which
don't you know, don't have a direct connection to cost
over runs of a renovation of a federal office building.
So you know, it's it's it is an unusual role,
but it's typical in this administration.
Speaker 4 (06:08):
Is it telling? I mean, the body language fits your J.
Speaker 2 (06:11):
Powell.
Speaker 4 (06:12):
I don't want to get all you know, psychologists on you,
but you know, it was pretty clear that it was
a little uncomfortable, and he seemed like he had a
stern look on his face. But having said that, you know, J.
Powell has gotten a lot of criticism from President Trump,
and I'm just wondering, is it kind of telling in
an environment that it's very rare that anyone seems to
(06:35):
maybe push back at President Trump to see that actually
play out in real time.
Speaker 2 (06:40):
Yeah, well, if you think absolutely, I mean, if you
think about them as just like normal people. Let's think
this is like a normal job. So your boss has
been after you and after you and after you for months,
telling you you're doing a terrible job. And then the
two of you have to go to some public event
together and you know, pretend that you work well together
like each other, and clearly these two don't. And yet
(07:04):
Powell had to do the common courtesy of taking the
president around the building. That he you know that he's
the chairman of the board of and so it was
already very awkward. And then when Powell started shaking his
head and contradicting the president in public, I think, I
think we're going to get some true social posts this afternoon.
Speaker 1 (07:24):
What what do you mean, though, like, like true social
posts in what direction? Like what is he what is
the president hoping to accomplish with this, because it does
look like it's look media has been. This is a
visit that he gave the heads up on to his
followers on social media about this. Media was there, he
took questions. Obviously, they follow the president wherever he goes,
(07:45):
where there is open press, but I mean this is something,
this is something he wants the world.
Speaker 2 (07:49):
To see, absolutely, And the fed her office was also
I think very smart this morning and offering the media
a tour before the tour, so a lot of reporters
got to go in there with cameras with no boots,
with everything to see the renovation, and a lot of
media outlets had stories on their sites ahead of the
(08:11):
tour saying here's what it looks like. And so that
if with the aim that I suppose, if Trump were
to contradict it and say, you know, it looks terrible,
it's it's going awfully. Then you know, the stories were
already out there with the condition of the construction site.
I'm no expert on construction, looked like a construction site
to me, you know. But when I'm talking about true
(08:33):
social posts later, I'm thinking that Trump was probably and
I have no idea, so let me just say that,
but I'm guessing he might be a little annoyed by
Powell's behavior and this will cause him to post on
true Social just some extra criticisms of Jerome Powell, who
probably figures one he can't legally fire him, and two
(08:53):
he already knows he's in the doghouse with Drop, so
what does he got to lose? Right, And Andy can't
at least legally be fired.
Speaker 3 (09:01):
So hey, listen before we go.
Speaker 4 (09:03):
Obviously there was all of that, but he did mention
about talking with the FED chair on a Japan trade deal.
We also said that we heard from the President that
he's doing well with the EU. Anything else of note
from those brief comments from the President that you think
our audience should be aware of.
Speaker 2 (09:23):
No, No, you're right, he did mention those The only
other thing I would not is that he once again,
sort of slapping Powel on the back, said I would
like him to lower interest rates. So that was, you know,
yet another opportunity for him to remind Powell of what
a doubt Powell has forgotten, which is that the president
would like interest rates lowered. But the FOMC, the Federal
(09:44):
reservers meeting later this month and they'll decide what to do,
and they tend to decide that independently of the President.
That's right least of the last next seventy years or so.
Speaker 4 (09:53):
Yeah, next week, July thirtieth, so.
Speaker 1 (09:56):
It's Wednesday that we're going to hear from the Fed chair.
And I am guessing the reporters who are in the
room are sharpening their pencils right now, asking questions, getting
questions ready about this visit. And I didn't know what
thea what he's going to say too, which is he's
going to stick to the duel mandate.
Speaker 4 (10:10):
Maybe J Powelly that hard hat on, just to make
sure he's protected. Hey, Wendy, you are amazing. Wendy Benjaminson.
She's senior editor at Bloomberg News. She's out there in
our Washington DC Bureau.
Speaker 1 (10:19):
I want to go now to just some updates that
we heard from the President. Another redhead crossing the terminal,
all these headlines coming together now. The President says, firing
Jay Powell's unnecessary, the President saying the FED will do
the right thing. And the President was asked specifically about
other names that he has in mind for the next
FED chair. He says, I have a name in mind,
maybe three names in mind. He did joke that with
(10:42):
Senator Tim Scott that he would be a good pick,
but he's not going to leave the Senate, the President said,
and reiterate it, there's no pressure for Powell to resign.
Speaker 4 (10:50):
All right, let's head back to the nation's capital and
to Bloomberg News. Federal Reserve reporter Joan al Marte joining us.
Interesting to watch the last hour the tour between the
President and the FED Chair J.
Speaker 2 (11:03):
Powell.
Speaker 4 (11:03):
Obviously some back and forth in terms of the cost
of the construction being done at the US Central Bank.
Jump in, tell us what you take away from watching
the interaction and some of the commentary that we got
from President Trump that followed.
Speaker 3 (11:21):
So it appears that the president, you know, he did
have an opportunity here to really hammer the Fed, perhaps
even more so on what's going on with their renovation.
And you know, he's been very critical of them on
social media, as you've noted, and he didn't necessarily do that.
He kind of made some comments about how I sort
(11:41):
of understand what happened, and you know, these things get
more expensive over time, and he, of course he did
say I would have done things a little bit differently,
offered his input on and maybe he would have avoided
some of these costs. But the bottom line seems to
be that he was not. He did not escalate the confrontation.
If anything, it felt like a little bit of a
(12:03):
de escalation here, and it was really another opportunity for
him to bring back the message that he has been sending,
which is that he wants to see lower interest rates,
would love to see lower interest rates. And you know,
it is a reminder that this is a white House
that is trying to exert more influence over these kinds
(12:25):
of decisions that are typically viewed as independent central back decisions.
Speaker 4 (12:30):
What do you make of any central bank head or
the head of the US Federal Reserve. And I just
think about every press conference that we see j Powell
or any forum that he's in. You know, certainly very
careful and thoughtful about what he says, because he knows
what he says can certainly impact financial markets. And I'm
just curious about the back and forth of the FED
(12:53):
share certainly caught off guard, safe to say, right with
that new estimate on the costs and then kind of
correcting the president or saying, well, wait a minute, let
me tell you what that's about. It was a little tense.
So what do you I don't know what's the thought
in terms of the FED chair kind of pushing back there.
Speaker 3 (13:12):
Yeah, of course, it was a unique image to see
them side by side. Usually they're not interacting too much
in person, and has as we've noted before, it's really
uncommon for the president to even go to the FAD
right for this. We hadn't seen it since two thousand
and six. So definitely a big image to see them together.
(13:32):
And I guess not all too surprising to hear Powell
push back. I mean, he's very much focused on numbers
and the data, and if he hears a number that
he's not familiar with, he wanted to see, you know,
they handed him the paper and then he clarified, Okay,
that includes another renovation that's already done, that was done
several years earlier. So I mean, I think that's what
we have seen from Powell. You know, he's really likely
(13:56):
to say and his message has been that he's focused
on doing his job, focused on the economy. But of
course if he here's a number that doesn't sound right
to him, he will speak up.
Speaker 1 (14:07):
I can only think about what happens next week. Of course,
we've been in this quiet period, so we haven't heard
from a lot of FED officials ahead of the meeting
that starts on Tuesday. We hear from Fedchair Jay Powell
on Wednesday, that's the thirtieth, And I'm wondering if you're
going to get any answers, or we're going to get
any answers in Washington from the FED chair, because I
(14:29):
know that reporters who cover the FED are getting their
questions ready to ask him about this tour and ask
him about the latest criticism.
Speaker 3 (14:36):
So next week, for sure, we are anticipating that he
will be asked about the tour and the renovations. And
you know themselves, what you know, they they've gone out
of their way to show the press around to provide
more information online about this renovation because it has become
a big line of attack for Republicans that want to
(14:57):
maybe push Powell out or put more pressure on the FED.
So it's going to come up next week, and we
still are largely not expecting for the FED to lower
rates at this meeting, according to what investors are counting on.
Despite we are seeing at least two FED officials, two
FED governors that were appointed by Trump, saying that they
(15:18):
would support a Ray cut at this meeting. So you know,
it's an interesting time. We could have a one or
two FED governors dissenting, but largely speaking, we're probably going
to see Fetcher Powell really kind of keep his options open,
maybe more of the same calling for more economic data
(15:38):
before they make a big move on race.
Speaker 4 (15:41):
You cover the FED, are you hearing anything about all
of this pressure and constant attention on Fedcher J. Powell
what it might be doing to him.
Speaker 3 (15:50):
I can't speak to exactly what is doing to him.
It is something that people are watching. It's dismounting pressure
on the FED. It's not something that we have seen
in recent times, but of course it's not the first time.
That we've seen a president come after the FED like
this or I don't want to say like this, but
come after the FED and try to influence what they do.
(16:12):
But clearly Powell has just kind of held his ground
and been a staunched the defender of the independence of
the FED.
Speaker 4 (16:20):
Bad to say if there's going to be oh, sorry,
go ahead, I'm just.
Speaker 1 (16:23):
Gonna say so. So is that it for criticism of
J Powell? Do you think they kind of got to
meet in person and things softened between them in person?
Do we see the president lay off him a little bit?
Speaker 3 (16:34):
I can't speak for Trump, but I mean, I guess
I would be surprising given how much he has said
and how how critical he has been. I mean, I
don't anticipate that this will mean that he's going to
stop calling for lower rates.
Speaker 4 (16:46):
Yeah, I would mean coming out of this in a
big way.
Speaker 1 (16:51):
The handing of the papers just iconic exchange.
Speaker 4 (16:54):
There's gonna be something that comes out of this to no,
thank you so much. Janelle Moore covers the FED here
port Bloomberg News, joining us from dc
Speaker 1 (17:10):
HM
Bloomberg Audio Studios, Podcasts, radio news. This is a breaking
news update from Bloomberg instant reaction and analysis from our
three thousand journalists and analysts around the world.
Speaker 2 (00:20):
It looks like it's about three point one billion, one
up a little bit or a lot. So the two
point seven is now three point one.
Speaker 3 (00:29):
Yeah, it just came out. Yeah, I haven't heard that
from anybody to feed.
Speaker 4 (00:35):
I just came out.
Speaker 3 (00:39):
I no side about three point one o'clock.
Speaker 2 (00:43):
Two.
Speaker 3 (00:43):
This game from us. Yes, I don't know who does that.
Speaker 4 (00:49):
You're including the Martin renovation.
Speaker 1 (00:51):
You just added retire capital. You just you just added
in a third building.
Speaker 3 (00:54):
Is what that is. That's a third building.
Speaker 2 (00:56):
It's a building that's being built.
Speaker 4 (00:58):
And it's been it was built five years ago.
Speaker 3 (01:01):
We finished Martin five years old, and the field as
part of the overall so new.
Speaker 4 (01:06):
We are, of course, just seeing a live shot and
hearing from President Trump and Fedchair J. Powell at the
construction site at the Federal Reserve in Washington, d C.
The President making some brief comments about the work and
construction that's being done at the Federal Reserve. He's been
somewhat critical about the costs and what he sees as
(01:28):
cost overruns, and a little bit of a back and
forth between the FED Chair and the President when it
comes to the cost, the FED Chair saying specifically that
was an inclusion of a third building where work had
already been done on. So kind of interesting to see
the back and forth. We did also see the President
being asked about taking back maybe some of the criticism
(01:49):
of FED Chair J. Powell. He didn't really want to
go into it, but he did also once again say
something he has said many times, and that is he
would like to see the FED cut interest rates.
Speaker 1 (01:59):
Yes, specifically, I want to go back to this idea
of the different numbers that have been discussed. Three point
one billion dollars is what the President just said is
the cost of this construction project. He said this in
a truth Social post too, just about at about three
point forty one Wall Street time earlier. That number coming
as a surprise to the Chairman of the Federal Reserve.
(02:19):
As you just mentioned, Carroll, he took out The President
took a piece of paper out of his pocket, handed
it to the FED Chair, who shook his head repeatedly
and said, no, no, this includes another building. We finished
that building five years ago.
Speaker 4 (02:31):
Yeah, exactly, so.
Speaker 1 (02:32):
Some real time disagreement about the figures that have been
discussed here exactly.
Speaker 4 (02:37):
We should also point out because trade is certainly front
and center here investors care. President Trump was asked about
some trade agreements, and he said that they're doing well
with the European Union and then again repeated that he
wants to see US interest rates come down. There that
as the FED chair was standing beside him. Let's get
to Wendy Benjaminson. I do feel like sometimes there are
(03:00):
moments in our history that will stay with us.
Speaker 1 (03:03):
That picture iconic of the two of them standing there
with hard huts on.
Speaker 4 (03:06):
Totally, Totally. Wendy of course, senior editor at Bloomberg new
she's out there in our Washington DC bureau. I have
to say, Wendy, Tim and I were looking at herself,
our kind of mouths open. Walk us through what we
just saw.
Speaker 2 (03:19):
Well, first, just the fact that the president toured a
construction site of what is, you know, a fairly routine
renovation of a building built in the nineteen thirties, that
he would tour it was extraordinary in itself. The fact
that he and Powell were standing shoulder to shoulder when
clearly they are at odds right now about just about
(03:41):
everything that Powell is doing. And then that extraordinary moment
you were just talking about, where Trump is speaking, The
President is speaking and saying what he believed the cost
of the renovation to be, or at least what he
said the cost of renovation to be, and Powell just
starts shaking his head like crazy, saying, no, that's not right,
which is unusual, but he's perfectly within his rights to
(04:04):
do that, and pointed out that the extra billion or
so that Trump mentioned was for a building that was
completed several years ago. And Trump said, well, it's part
of the overall project, but it was completed, it was done.
I mean, this is the buildings that have irked President
Trump and Senator Scott, who was there with them, you know,
(04:26):
are I think it's around two billion, two and a
half billion.
Speaker 1 (04:30):
One person who is set to be there today. The
President sending a missing in a post on true socialist
Bill Poulty, who is his appointees to the National Capital
Planning Commission, but also overseas Fanny and Freddie.
Speaker 2 (04:44):
And I'm just.
Speaker 1 (04:46):
Wondering how you view his role in all of this,
because he's been so outspoken with his criticism of FED
Chair J. Powell, and it seems like he's also served
as a sort of person who's tried to communicate those
frustrations to a wider audience, including lawmakers in Washington, d C.
Speaker 2 (05:06):
What is his role here, Well, you've described it very aptly,
his role as one of Trump's team. A lot of
you know, a lot of these loyal Trump appointees will
seize an opportunity to take on the role as sort
of the Greek chorus for Trump. You know, he can
post on True's social and he says things, but then
(05:26):
you have this sort of chorus behind him of guys
like Bill Poulty or Senator Scott or you know, whoever
else it is at the moment. Sometimes it's Treasury Secretary
Scott mess and sometimes it's Commerce Secretary Howard Lenningk and
they just sort of step a little bit outside their
roles to act simply as an ally of the president
and able to take a case on that he wants
(05:47):
to take on. This is a little unusual because, as
you noted this, Bill Poulty runs Fanny and Freddy, which
don't you know, don't have a direct connection to cost
over runs of a renovation of a federal office building.
So you know, it's it's it is an unusual role,
but it's typical in this administration.
Speaker 4 (06:08):
Is it telling? I mean, the body language fits your J.
Speaker 2 (06:11):
Powell.
Speaker 4 (06:12):
I don't want to get all you know, psychologists on you,
but you know, it was pretty clear that it was
a little uncomfortable, and he seemed like he had a
stern look on his face. But having said that, you know, J.
Powell has gotten a lot of criticism from President Trump,
and I'm just wondering, is it kind of telling in
an environment that it's very rare that anyone seems to
(06:35):
maybe push back at President Trump to see that actually
play out in real time.
Speaker 2 (06:40):
Yeah, well, if you think absolutely, I mean, if you
think about them as just like normal people. Let's think
this is like a normal job. So your boss has
been after you and after you and after you for months,
telling you you're doing a terrible job. And then the
two of you have to go to some public event
together and you know, pretend that you work well together
like each other, and clearly these two don't. And yet
(07:04):
Powell had to do the common courtesy of taking the
president around the building. That he you know that he's
the chairman of the board of and so it was
already very awkward. And then when Powell started shaking his
head and contradicting the president in public, I think, I
think we're going to get some true social posts this afternoon.
Speaker 1 (07:24):
What what do you mean, though, like, like true social
posts in what direction? Like what is he what is
the president hoping to accomplish with this, because it does
look like it's look media has been. This is a
visit that he gave the heads up on to his
followers on social media about this. Media was there, he
took questions. Obviously, they follow the president wherever he goes,
(07:45):
where there is open press, but I mean this is something,
this is something he wants the world.
Speaker 2 (07:49):
To see, absolutely, And the fed her office was also
I think very smart this morning and offering the media
a tour before the tour, so a lot of reporters
got to go in there with cameras with no boots,
with everything to see the renovation, and a lot of
media outlets had stories on their sites ahead of the
(08:11):
tour saying here's what it looks like. And so that
if with the aim that I suppose, if Trump were
to contradict it and say, you know, it looks terrible,
it's it's going awfully. Then you know, the stories were
already out there with the condition of the construction site.
I'm no expert on construction, looked like a construction site
to me, you know. But when I'm talking about true
(08:33):
social posts later, I'm thinking that Trump was probably and
I have no idea, so let me just say that,
but I'm guessing he might be a little annoyed by
Powell's behavior and this will cause him to post on
true Social just some extra criticisms of Jerome Powell, who
probably figures one he can't legally fire him, and two
(08:53):
he already knows he's in the doghouse with Drop, so
what does he got to lose? Right, And Andy can't
at least legally be fired.
Speaker 3 (09:01):
So hey, listen before we go.
Speaker 4 (09:03):
Obviously there was all of that, but he did mention
about talking with the FED chair on a Japan trade deal.
We also said that we heard from the President that
he's doing well with the EU. Anything else of note
from those brief comments from the President that you think
our audience should be aware of.
Speaker 2 (09:23):
No, No, you're right, he did mention those The only
other thing I would not is that he once again,
sort of slapping Powel on the back, said I would
like him to lower interest rates. So that was, you know,
yet another opportunity for him to remind Powell of what
a doubt Powell has forgotten, which is that the president
would like interest rates lowered. But the FOMC, the Federal
(09:44):
reservers meeting later this month and they'll decide what to do,
and they tend to decide that independently of the President.
That's right least of the last next seventy years or so.
Speaker 4 (09:53):
Yeah, next week, July thirtieth, so.
Speaker 1 (09:56):
It's Wednesday that we're going to hear from the Fed chair.
And I am guessing the reporters who are in the
room are sharpening their pencils right now, asking questions, getting
questions ready about this visit. And I didn't know what
thea what he's going to say too, which is he's
going to stick to the duel mandate.
Speaker 4 (10:10):
Maybe J Powelly that hard hat on, just to make
sure he's protected. Hey, Wendy, you are amazing. Wendy Benjaminson.
She's senior editor at Bloomberg News. She's out there in
our Washington DC Bureau.
Speaker 1 (10:19):
I want to go now to just some updates that
we heard from the President. Another redhead crossing the terminal,
all these headlines coming together now. The President says, firing
Jay Powell's unnecessary, the President saying the FED will do
the right thing. And the President was asked specifically about
other names that he has in mind for the next
FED chair. He says, I have a name in mind,
maybe three names in mind. He did joke that with
(10:42):
Senator Tim Scott that he would be a good pick,
but he's not going to leave the Senate, the President said,
and reiterate it, there's no pressure for Powell to resign.
Speaker 4 (10:50):
All right, let's head back to the nation's capital and
to Bloomberg News. Federal Reserve reporter Joan al Marte joining us.
Interesting to watch the last hour the tour between the
President and the FED Chair J.
Speaker 2 (11:03):
Powell.
Speaker 4 (11:03):
Obviously some back and forth in terms of the cost
of the construction being done at the US Central Bank.
Jump in, tell us what you take away from watching
the interaction and some of the commentary that we got
from President Trump that followed.
Speaker 3 (11:21):
So it appears that the president, you know, he did
have an opportunity here to really hammer the Fed, perhaps
even more so on what's going on with their renovation.
And you know, he's been very critical of them on
social media, as you've noted, and he didn't necessarily do that.
He kind of made some comments about how I sort
(11:41):
of understand what happened, and you know, these things get
more expensive over time, and he, of course he did
say I would have done things a little bit differently,
offered his input on and maybe he would have avoided
some of these costs. But the bottom line seems to
be that he was not. He did not escalate the confrontation.
If anything, it felt like a little bit of a
(12:03):
de escalation here, and it was really another opportunity for
him to bring back the message that he has been sending,
which is that he wants to see lower interest rates,
would love to see lower interest rates. And you know,
it is a reminder that this is a white House
that is trying to exert more influence over these kinds
(12:25):
of decisions that are typically viewed as independent central back decisions.
Speaker 4 (12:30):
What do you make of any central bank head or
the head of the US Federal Reserve. And I just
think about every press conference that we see j Powell
or any forum that he's in. You know, certainly very
careful and thoughtful about what he says, because he knows
what he says can certainly impact financial markets. And I'm
just curious about the back and forth of the FED
(12:53):
share certainly caught off guard, safe to say, right with
that new estimate on the costs and then kind of
correcting the president or saying, well, wait a minute, let
me tell you what that's about. It was a little tense.
So what do you I don't know what's the thought
in terms of the FED chair kind of pushing back there.
Speaker 3 (13:12):
Yeah, of course, it was a unique image to see
them side by side. Usually they're not interacting too much
in person, and has as we've noted before, it's really
uncommon for the president to even go to the FAD
right for this. We hadn't seen it since two thousand
and six. So definitely a big image to see them together.
(13:32):
And I guess not all too surprising to hear Powell
push back. I mean, he's very much focused on numbers
and the data, and if he hears a number that
he's not familiar with, he wanted to see, you know,
they handed him the paper and then he clarified, Okay,
that includes another renovation that's already done, that was done
several years earlier. So I mean, I think that's what
we have seen from Powell. You know, he's really likely
(13:56):
to say and his message has been that he's focused
on doing his job, focused on the economy. But of
course if he here's a number that doesn't sound right
to him, he will speak up.
Speaker 1 (14:07):
I can only think about what happens next week. Of course,
we've been in this quiet period, so we haven't heard
from a lot of FED officials ahead of the meeting
that starts on Tuesday. We hear from Fedchair Jay Powell
on Wednesday, that's the thirtieth, And I'm wondering if you're
going to get any answers, or we're going to get
any answers in Washington from the FED chair, because I
(14:29):
know that reporters who cover the FED are getting their
questions ready to ask him about this tour and ask
him about the latest criticism.
Speaker 3 (14:36):
So next week, for sure, we are anticipating that he
will be asked about the tour and the renovations. And
you know themselves, what you know, they they've gone out
of their way to show the press around to provide
more information online about this renovation because it has become
a big line of attack for Republicans that want to
(14:57):
maybe push Powell out or put more pressure on the FED.
So it's going to come up next week, and we
still are largely not expecting for the FED to lower
rates at this meeting, according to what investors are counting on.
Despite we are seeing at least two FED officials, two
FED governors that were appointed by Trump, saying that they
(15:18):
would support a Ray cut at this meeting. So you know,
it's an interesting time. We could have a one or
two FED governors dissenting, but largely speaking, we're probably going
to see Fetcher Powell really kind of keep his options open,
maybe more of the same calling for more economic data
(15:38):
before they make a big move on race.
Speaker 4 (15:41):
You cover the FED, are you hearing anything about all
of this pressure and constant attention on Fedcher J. Powell
what it might be doing to him.
Speaker 3 (15:50):
I can't speak to exactly what is doing to him.
It is something that people are watching. It's dismounting pressure
on the FED. It's not something that we have seen
in recent times, but of course it's not the first time.
That we've seen a president come after the FED like
this or I don't want to say like this, but
come after the FED and try to influence what they do.
(16:12):
But clearly Powell has just kind of held his ground
and been a staunched the defender of the independence of
the FED.
Speaker 4 (16:20):
Bad to say if there's going to be oh, sorry,
go ahead, I'm just.
Speaker 1 (16:23):
Gonna say so. So is that it for criticism of
J Powell? Do you think they kind of got to
meet in person and things softened between them in person?
Do we see the president lay off him a little bit?
Speaker 3 (16:34):
I can't speak for Trump, but I mean, I guess
I would be surprising given how much he has said
and how how critical he has been. I mean, I
don't anticipate that this will mean that he's going to
stop calling for lower rates.
Speaker 4 (16:46):
Yeah, I would mean coming out of this in a
big way.
Speaker 1 (16:51):
The handing of the papers just iconic exchange.
Speaker 4 (16:54):
There's gonna be something that comes out of this to no,
thank you so much. Janelle Moore covers the FED here
port Bloomberg News, joining us from dc
Speaker 1 (17:10):
HM
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