Trump's Tensions with Fed: A Presidential Power Play

President Donald Trump recently inquired among Republican lawmakers about the possibility of dismissing Federal Reserve Chair Jerome Powell, as reported by CBS News. This meeting in the Oval Office highlights Trump's ongoing dissatisfaction with the Federal Reserve's monetary policy decisions, notably their resistance to lowering interest rates.

Despite Trump's vocal criticism and previous calls for Powell's resignation, the president is unable to fire him directly over policy disagreements. Powell, appointed by Trump in 2017 and later re-nominated by President Joe Biden, remains committed to serving his term until May 2026. Tensions persist as the Fed awaits clarity on the potential inflationary impact of tariffs.

The White House has recently upped its criticism, particularly concerning the $2.5 billion renovation of the Fed's Washington headquarters. Powell has asked the central bank's inspector general to investigate, following a letter from the Office of Management and Budget highlighting Trump's concerns over cost overruns in the project.

(With inputs from agencies.)