WASHINGTON, July 24: President Donald Trump is set to visit the Federal Reserve on Thursday as his allies scrutinize its expensive building renovations, a personal and confrontational escalation of his campaign to pressure the central bank to slash interest rates.
Trump administration officials have used concerns about the building overhaul to cast doubt on Fed Chairman Jerome Powell’s decision-making. Trump’s sustained campaign is an unusual and dangerous departure from the norm, with Trump calling on Powell to resign, insulting him repeatedly, and suggesting that he could be fired. Ousting Powell could be illegal and send shockwaves through global markets, potentially having the opposite effect that Trump wants as he pushes for lowering borrowing costs.
Trump has criticised Powell for months because the chair has kept the short-term interest rate the Fed controls at 4.3% this year, after cutting it three times last year. Powell wants to see how the economy responds to Trump’s sweeping tariffs on imports, which Powell says could push up inflation.
The Fed has been renovating its Washington headquarters and a neighboring building, with the estimated cost ballooning from USD 1.9 billion to about USD 2.5 billion. (AP)
