Trump heads to Fed in surprise visit; Is Powell’s job on the line?

In a rare and dramatic move, US President Trump is reportedly heading to the Federal Reserve headquarters in DC today at 4 PM ET. This will be the first official presidential visit to the building in nearly two decades. However, this doesn’t look like a courtesy call.

Trump’s visit comes amid escalating tensions with Fed Chair Jerome Powell. He has been making a string of public attacks on Powell, while criticising him for both economic policy decisions and alleged mismanagement in costs tied to a renovation of two historic Fed buildings.

Trump has even blasted Powell for keeping rates at 4.3% and mishandling inflation.

Trump eyes Fed control?

The Fed has defended its position by arguing that it is waiting to assess the full impact of Trump’s tariffs before making any further moves. Meanwhile, Trump isn’t buying it and suggests Powell could be fired. He argues that Powell should be lowering rates further to stimulate the economy amid rising trade frictions.

In a sign of internal division, Treasury Secretary Scott Bessent moved to cool off the emerging concerns on Wednesday. He reportedly said that there’s “nothing that tells me that [Powell] should step down right now.” This offered markets a brief dose of reassurance. The S&P 500 and Nasdaq are already hitting record highs amid the stress.

The White House confirmed the visit in a late-night schedule release but did not say whether Trump would meet Powell face-to-face. White House deputy chief of staff James Blair had earlier said that administration officials would attend the Fed visit, but stopped short of confirming the president’s participation. However, it’s clear now.

Polymarket bets on Powell’s fate

Markets are watching closely. Traders on Polymarket are choosing their sides on the matter. As of now, only 1% see that Jerome Powell will be out as Fed Chair by July 31, while 14% bet that Trump will try to fire Powell by August 31. 19% think Jerome Powell will be out as Fed Chair in 2025. 

On the other side, Treasury yields inched higher on Thursday morning. The 10-year yield is touching 4.4%, as investors brace for what could be a politically charged showdown. Tensions over central bank independence, interest rate policy, and even building renovations have now collided in what could be a defining moment for Fed–White House relations.

Trump picked Powell during his first term. Biden re-nominated him. Now, Trump’s return to Washington and to the Fed signals that he wants control of the narrative again.

Amid this, the US and EU may be closing in on a new trade pact. European officials say the agreement would likely impose a 15% tariff on most EU exports to the US.