The dispute between former President Trump and Fed Chair Jerome Powell escalated as Trump strongly criticized the costs of renovating the Fed headquarters and threatened litigation.
Trump not only opposed the enormous cost of the Fed renovation project but also criticized Powell for lax management, while urging to lower interest rates to support the economy, amidst uncertainty about Powell's future at the Fed.
MAIN CONTENT
Trump accused Powell of overspending on the Fed building renovation project.
Trump criticized Powell for being slow in adjusting interest rates.
Powell's future at the Fed is unclear, Trump nominates a replacement.
How did Trump react to the cost of renovating the Fed headquarters?
Trump publicly criticized Jerome Powell for the cost of repairing the Fed headquarters exceeding the estimate, from $50 million to $3 billion.
In a post on Truth Social, Trump stated that the project is "completely unreasonable" and called it poor management, causing severe budget losses. Earlier, many Republican members of the U.S. Congress also condemned Powell for allowing the renovation costs of the Fed headquarters to escalate uncontrollably.
Budget Director Russell Vought once accused Powell of violating regulations during construction, but Powell responded that the project was closely monitored and the expenditures were necessary for maintenance.
"Three billion dollars for a job that should only cost $50 million is unacceptable."
Donald Trump, former President of the United States, 2025
Trump also blamed former Treasury Secretary Steven Mnuchin for supporting Powell's appointment.
Why does Trump request a reduction in interest rates?
Trump criticized Powell for not timely lowering interest rates, causing significant damage to the U.S. economy.
He stated that Powell's decisions always occur "too slowly," causing continuous damage to accumulate, yet he believes the economy is still strong enough to overcome the negative impacts from the current monetary policy.
In reality, in the context of inflation showing signs of decline, opinions surrounding the Fed's interest rate policy are increasingly noted and debated.
"The losses from delayed monetary policy adjustments are incalculable."
Donald Trump, 2025
What is the future of Jerome Powell at the Fed?
Powell's term lasts until May 2026, but former President Trump has mentioned the possibility of firing him early.
However, the Fed Chair can typically only be removed for serious reasons, not merely due to policy differences. Trump has currently nominated Stephen Miran to the Fed Board to replace member Adriana Kugler, and Miran will serve until January 2026 while searching for the next Fed Chair.
The nomination of new personnel is seen as preparation for potential management changes in the near future, but final decisions still rest with the relevant authorities.
Frequently Asked Questions
What was Trump's reaction to the costs of renovating the Fed headquarters?
Trump criticized the $3 billion expenditure far exceeding the $50 million estimate, calling it wasteful and poorly managed.
How is Powell accused of managing the project?
He is accused of violating regulations and neglecting management, but Powell insists on closely monitoring the project.
What is the reason Trump wants the Fed to lower interest rates?
Trump believes the Fed acted too slowly, causing significant economic damage, and called for lowering interest rates to support growth.
Can Powell be fired before his term ends?
The Fed Chair can only be removed for serious reasons, not for ordinary policy differences.
Who did Trump nominate to replace on the Fed Board?
Trump nominated Stephen Miran as a member of the Fed Board until January 2026.
Source: https://tintucbitcoin.com/trump-kien-powell-tranh-chi-phi-tru-so/
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