U.S. President Trump Targets Federal Reserve Amid Tensions

In a significant development, President Donald Trump will visit the Federal Reserve's headquarters in Washington this Thursday. The visit comes amid escalating tensions between the Trump administration and the independent central bank, with Trump having repeatedly called for Fed Chair Jerome Powell to cut interest rates. The president has even questioned Powell's position, though he has stated he doesn't intend to dismiss him.

The anticipated visit, announced by the White House late Wednesday, surfaces as Trump's administration faces scrutiny over various political issues, including responding to scandals involving the late convicted sex offender Jeffrey Epstein. White House budget director Russell Vought and Treasury Secretary Scott Bessent have criticized the Fed for alleged mismanagement and overspending on renovations of its historic buildings.

Amid this backdrop, market reactions to Trump's visit have been muted, with slight changes in Treasury bond yields. The visit is reminiscent of past presidential engagements with the Fed, though this occasion is marked by unique political tensions. Analysts warn that Trump's stance on the Fed threatens crucial financial system principles of central bank independence.

(With inputs from agencies.)