BBC News
US President Donald Trump has spent months attacking the head of the US central bank on social media and speaking to reporters, calling out Federal Reserve Chairman Jerome Powell, like “Numbskull.”
The conflict took place in person on Thursday as two men collided with the costs of renovating the building, and cameras were lying around.
In the tense moments, he says Trump is moving slowly to cut interest rates as he puts pressure on Powell.
He has repeatedly raised the possibility of firing Powell, but just to immediately dismiss the idea, analysts say it will shake up financial markets and spark a legitimate fight.
Trump’s visit to the Federal Reserve is the first by a president sitting in about 20 years.
It is expected that policymakers will be widely voted to vote not to change interest rates ahead of the Fed’s meeting in Washington next week.
Speaking to reporters at the start of the tour, Trump said the administration is “seeing what’s going on” with the government’s $2.7 billion (£1.8 billion) renovation.
“It looks like about $3.1 billion,” Trump said. Powell shook his head.
“I’m not aware of that,” Powell shot. “I haven’t heard that from anyone on the Fed.”
Trump then produced documents from his jacket pocket. Powell read briefly and looked back to the president, saying Trump is “adding a third building” to the total.
“It’s a building that’s been built,” Trump said.
Powell replied: “It’s a building built five years ago…it’s not new.”
Trump was also asked by a reporter what he would do as a real estate developer, with a project manager who had been over budget.
“Generally speaking, I’ll fire him,” he replied.
After a visit to the Federal Reserve, Trump wrote on social media, “Construction has come a long way, but it would have been much better if it never started, but what is it?”
He said “cost overruns are pretty much,” but the US “can afford almost anything.”
“After that, and more importantly, we’ll cut interest rates!” Trump said.
Under US law, central bank governors simply remove “for the cause” and “for the cause” and are usually understood as a major fraud.
The protection was intended to isolate banks from political pressure and ensure that their leaders set policies in the best interests of the economy.
Legal experts say cost overruns for construction projects will usually not meet that bar.
During the visit, Trump was asked if Powell could say that he could urge him to stay away from criticism, and he said he wanted to “reduce interest rates.”
Still, White House officials and Trump’s allies are honing their renovation issues.
The renovation project under attack was first approved in 2017 and was intended to allow banks to consolidate their operations.
It includes two buildings from the 1930s.
The Fed has condemned the cost-overrun of issues, such as finding more asbestos than expected, and challenged whether the White House characteristics of other aspects of the project would involve a “VIP elevator.”
Trump alternated with “stubborn mules” and “Trump Harter” – told reporters this month that he believes that inappropriate management of the plan is “a kind of ‘something’.
Getty ImagesTrump nominated Powell for his role as Fed Chairman during his first presidential term in 2017. President Joe Biden has confirmed Powell. His term as chairman is expected to end in May 2026.
Democrats accused Trump of trying to “distract and bias” the attack on Powell as he faces pressure from supporters over handling the Jeffrey Epsteinfiles.
They also claim that he sets Powell as a scapegoat if the US economy weakens.
Typically, the Fed lowers the rate when the economy is in trouble. They hope to facilitate this by boosting economic activity and stabilizing employment.
Push prices up with the aim of raising interest rates, slowing activity and facilitating pressure when you are worried about inflation.
Economists say Trump’s fundamental changes to economic policies, including Trump’s tariffs, tax cuts, reduced government spending and immigration crackdowns, have pose a risk in both scenarios, making it difficult for banks to know what to do.
Powell said he believes the economy is stable enough to wait for the Fed to see what happens.
Trump says interest rates should be reduced to reduce the US government’s large borrowing costs and to facilitate mortgages and other loans for Americans.
He claims that inflation, which rose to 2.7% in June, declined as a problem.
