Trump's Tensions Rise Over Federal Reserve Renovation
President Donald Trump criticizes the Federal Reserve's $2.5 billion renovation of its headquarters, suggesting it reflects mismanagement and leaves the possibility of firing Fed Chair Jerome Powell. The renovation project, impacted by tariffs and rising costs, could serve as a pressure tool against Powell as he grapples with interest rate decisions.
- Country:
- United States
In a move steeped in controversy, President Donald Trump lambasted the Federal Reserve over its $2.5 billion renovation undertaking, labeling it an example of the institution veering off course. This bold critique coincides with mounting pressures on Fed Chair Jerome Powell, whom Trump has continuously urged to cut interest rates.
Journalists recently toured the construction site, which includes the historic Marriner S. Eccles building. They observed new security enhancements such as blast-resistant windows and seismic walls. Fed staff justified the escalating costs, citing tariffs and inflationary material costs as significant contributors.
While the project progresses, it serves as a potential basis for Trump to remove Powell, despite some administrative officials dismissing such plans. Treasury Secretary Scott Bessent, a potential replacement, defended Powell, highlighting a divide within the administration regarding Powell's leadership amidst economic challenges.
(With inputs from agencies.)
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