Yesterday, at a public event in Washington, Federal Reserve Chair Jerome Powell refuted President Donald Trump's claims about renovation costs.
Trump's Accusations and Powell's Response
During a joint visit to the historic Fed building, Trump claimed that renovation costs exceeded $3.1 billion. Powell retorted, 'That's not true. I haven’t heard that from anybody,' clarifying that the figure included a separate federal building constructed five years ago.
Powell's Criticism within Trump's Administration
While Trump criticized Powell, some allies, such as Billy Pulte, openly called for Powell’s resignation, stating 'Jerome Powell must resign.' Trump himself has repeatedly floated the idea of replacing Powell, although legal experts indicate that such action is complicated.
Concerns over Fed's Independence
Treasury Secretary Scott Bessent appeared on Fox Business, expressing concern about the Fed's spending and calling for an 'internal review.' He argued that the operations of the Fed threaten its independence. Notably, Powell has yet to lower interest rates this year, while Trump insists that doing so would save the country 'hundreds of billions' in debt payments.
The conflict between Trump and Powell highlights the growing tension between the administration and the Federal Reserve regarding economic management and expenditures.
