President Donald Trump visited the Federal Reserve headquarters on Thursday to inspect a $2.5 billion renovation project, which he criticized as excessively costly. The visit occurred less than a week before a crucial rate-setting meeting where the Fed is expected to maintain interest rates in the 4.25-4.50 percent range. Trump has repeatedly pressured Fed Chairman Jerome Powell to lower rates, even resorting to personal insults, calling him a "numbskull" earlier this week. During the tour, Trump publicly clashed with Powell over the renovation's cost, citing a figure of $3.1 billion, which Powell later clarified included a previously completed building.

The White House has intensified its criticism of the Fed's management of the renovation, alleging cost overruns and potential mismanagement, with officials citing figures as high as a $700 million overrun. The Fed attributes the increased costs to unexpected challenges, including toxic materials and higher-than-anticipated labor and material costs. The project, which began in mid-2022, is expected to be completed by 2027. Trump's actions have raised concerns about political interference in the Fed's independence, a crucial element of the global financial system. Several senators offered mixed reactions to the presidential visit, with some expressing support and others emphasizing the importance of the Fed's independence.

Trump's criticism of Powell and the visit itself have raised concerns about potential damage to the Fed's independence and the broader stability of financial markets.