Trump vs. Powell: A Costly Federal Reserve Renovation Controversy
President Donald Trump is set to visit the Federal Reserve headquarters after expressing dissatisfaction with the costly renovation projects under Fed Chair Jerome Powell. Trump's criticism stems from his extreme disapproval of Powell's handling of interest rates and the soaring renovation costs, which Trump sees as potentially grounds for Powell's dismissal.
- Country:
- United States
President Donald Trump is poised to visit the Federal Reserve headquarters in a move highlighting his dissatisfaction with Fed Chair Jerome Powell. Trump's ire is primarily directed at the extensive renovations of two Fed buildings, a project whose costs have spiraled from USD 1.9 billion to USD 2.5 billion.
Central to Trump's frustration is his disagreement with Powell on monetary policy; Powell has resisted Trump's calls for further interest rate cuts. Maintaining the short-term rate at 4.3 percent, Powell aims to assess the economic impact of Trump's import tariffs.
The Federal Reserve's independence could be at stake, as Trump's criticism raises questions about Powell's job security, a move that could unsettle economists and Wall Street investors alike.
(With inputs from agencies.)
ALSO READ
RBI May Consider Rate Cuts Amid Weak Urban Demand and Easing Inflation
How Energy Price Shocks Drove Inflation Without Changing the Passthrough Mechanism
Before 2014 inflation rate used to be in double digit, it is now around 2 per cent; inflation is low and growth rate high: PM Modi.
Inflation Holds Steady at 2.7% as Govt Touts Economic Stability, Warns on Council Rates
Renovation Controversy: Trump Administration Eyes Fed's Upgrades
Google News