On the afternoon of July 24 local time (after the U.S. stock market closed), U.S. President Donald Trump visited the Federal Reserve to inspect its costly construction project. U.S. media reported that this marked the first formal visit by a sitting U.S. President to the Fed in nearly 20 years. This move is seen as a further escalation of his pressure campaign against Fed Chair Jerome Powell.

Analysts pointed out that the timing of Trump's visit is highly sensitive, coming less than a week before the Fed's July interest rate decision announcement. Notably, amid Trump's sustained pressure, traders have begun betting on a more aggressive rate cut by the Fed next year. Traders currently expect the Fed to cut rates by 76 basis points next year, significantly higher than the 25 basis points anticipated in April.

Investors have been closely watching the 'tug-of-war' between the White House and the Fed. On Thursday Eastern Time, the three major U.S. stock indexes closed mixed, with the Nasdaq and S&P 500 hitting new record highs. Strong AI demand shown in Alphabet's earnings report boosted investor confidence. Data showed that U.S. initial jobless claims fell for the sixth consecutive week, the longest declining streak since 2022. The performance of the job market will be a key focus at the Fed's meeting next week.

Comprehensive reports from Securities Times China and CCTV News indicate that during the U.S. stock market's late trading session on July 24 Eastern Time (around 4 a.m. Beijing time on the 25th), Trump arrived at the Federal Reserve headquarters in Washington, D.C., for an inspection. He discussed the controversial high-cost renovation of the Fed headquarters with Chair Powell, again urging the Fed to cut interest rates while hinting he would abandon plans to fire Powell.

During the inspection, Trump showed Powell paper documents regarding the renovation costs of the Fed headquarters buildings, stating that the renovation costs for two Fed buildings had exceeded $31 billion.

Powell immediately refuted this estimate, saying, 'I haven't heard anyone say that. Trump is including the cost of a third government building, and that building was constructed five years ago.'

Trump said he hoped Powell would lower interest rates, suggesting that America could save over a trillion dollars if rates were cut by three percentage points to one percent. He stated he would observe how the committee sets interest rate rules.

Furthermore, Trump mentioned the Fed renovation project data. Powell said the renovation is expected to be completed in 2027. Trump remarked that he typically fires project managers who exceed their budgets.

After the visit, Trump said there was 'no tension' in his meeting with Powell and declined to reveal specifics of their discussion on interest rates.

Trump hinted that he would not dismiss Powell solely over the renovation project's cost overruns. Trump said, 'Firing Powell is a major move. I don't think it's necessary.'

The Trump administration has repeatedly criticized the Fed building renovation as 'excessively luxurious.' U.S. media suggests this seems to be an attempt to find a justification for removing Powell from his position.

Currently, the White House has initiated an investigation procedure into the 'cost overruns' of the Fed headquarters renovation, led by the Office of Management and Budget for an audit and assessment. The President's economic team believes the renovation project, originally budgeted at $1.9 billion but whose total cost has now surged to approximately $2.5 billion, 'lacks transparency.' They have questioned its budget management and hinted at holding Powell accountable for it.

Earlier on the 24th, the Associated Press reported that Trump's tour of the Fed building in Washington, D.C., marked an escalation of his pressure on Fed Chair Jerome Powell regarding the renovation project and interest rate policy.

However, on the day of his inspection, Trump said, 'There's no pressure on Powell to resign. His term will be up soon. I'm sure he'll do the right thing. I just want to see one thing happen, very simply: Rates must come down.'

Regarding Powell's successor, Trump said he had a name in mind for the next Fed chair, and there might be three candidates.

Trump nominated Powell as Fed Chair in 2017, and his term lasts until May 2026. This year, Trump has repeatedly criticized Powell and threatened to remove him from his position as Fed Chair to pressure the Fed into cutting rates.

Although previous presidents have expressed dissatisfaction with Fed policies, no president has ever attempted to dismiss a Fed Chair. Powell previously stated that the law 'does not permit' his removal.

Earlier this week, Trump told the media, 'I think he's (Powell) not doing a great job, but anyway, he's about to step down.'