PANews July 12 news, according to Jin Shi reports, the renovation dispute of the building has emboldened a faction within the Trump administration that has long wanted to challenge the independence of the Federal Reserve. Treasury Secretary Mnuchin and some economic advisers generally advocate for maintaining the independence of the Federal Reserve. For example, Mnuchin recently declined to criticize Trump regarding the building renovation in an interview with Fox Business. However, other advisers and external allies have been exploring legal ways to remove Powell from office since before the election. Powell stated in his testimony last month: 'During my term, no one wants to undertake a major renovation of a historic building, let alone two historic buildings that require significant repairs.'
Previously, Trump pushed for lower interest rates on a larger scale to reduce government borrowing costs. The Federal Reserve is expected not to lower interest rates at its meeting later this month, but Powell has indicated that if inflation performs well or the labor market weakens, there may be rate cuts later this year. Trump hopes to reduce the debt servicing costs of the federal deficit, while his tax cuts may expand the federal deficit. However, beyond extreme situations like war, central banks in developed economies will resist such pressure. They believe that stable inflation is crucial for maintaining people's confidence in their national currency.