CoinVoice has learned that, according to Jin Shi reports, the renovation dispute of the building has made a faction within the Trump administration that has long wanted to challenge the independence of the Federal Reserve bolder. Treasury Secretary Mnuchin and other economic advisors generally advocate for maintaining the independence of the Federal Reserve. For example, Mnuchin recently declined to criticize Trump regarding the building renovation during an interview with Fox Business. However, other advisors and external allies have been exploring legal avenues to remove Powell from office since before the election.
Powell said 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 extensive repairs." Previously, Trump pushed for lower interest rates on a larger scale to reduce government borrowing costs. The Federal Reserve is expected not to cut rates at its meeting later this month, but Powell has already hinted that if inflation performs well or the labor market weakens, there may be a rate cut 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, central banks in developed economies will resist such pressures except in extreme situations like war. They believe that stabilizing inflation is crucial for maintaining people's confidence in their national currency. [Original link]