President Donald Trump continues to pressure Federal Reserve Chairman Jerome Powell. The president plans to personally visit the central bank Thursday afternoon, where a $2.5 billion renovation is underway.
Trump has been critical of Powell’s decisions to hold interest rates steady and of the renovation project, which has gone well over the initial budget of $1.9 billion.
The visit comes amid Trump’s “nasty” pressure campaign to get Powell and the Federal Open Market Committee to lower interest rates. The Fed has taken a wait-and-see approach on interest rates, citing Trump’s broad-based reciprocal tariffs as a reason for caution.
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Trump previously called Powell to the White House for a meeting. After that May meeting, Powell issued a rare statement saying that FMOC decisions would be based “solely on careful, objective, and non-political analysis.”
Since returning to the White House for his second term, Trump has called Powell every name in the book. One of the president’s favorites for Powell has been “numbskull.” He’s also given Powell the nickname “Too Late” for not cutting interest rates as fast as Trump would like.
Powell has largely ducked Trump’s criticism. When Trump criticized cost overruns on the remodel, the Fed Chairman referred the matter to the central bank’s inspector general.
Last week, Trump said he wasn’t planning to fire Powell, but kept the option on the table.
“We’re not planning on doing anything,” Trump told reporters at the White House.
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Later, the president added, “I don’t rule out anything, but I think it’s highly unlikely, unless he has to leave for fraud.”
The fraud remark referred directly to the renovation project. The Fed is a self-funded, quasi-private institution. The president picks its members in staggered terms with Senate confirmation.
Trump has wanted to fire Powell for years, but hasn’t taken action.
Syndicated with permission from The Center Square.