Trump Visits Federal Reserve to Pressure Powell on Rate Cuts
BREAKING: President Donald Trump is set to visit the Federal Reserve in Washington on Thursday, intensifying his campaign to pressure Chairman Jerome Powell to cut interest rates. This unprecedented move highlights Trump’s confrontational approach, targeting the central bank’s recent building renovations, which have drawn scrutiny from his allies.
The visit is scheduled for Thursday morning, coinciding with a planned inspection of the Fed’s costly renovations, which have escalated from an initial estimate of $1.9 billion to nearly $2.5 billion. Trump has publicly criticized these expenses, labeling them “disgraceful” and questioning Powell’s decision-making at the helm of the Fed.
Trump’s ongoing campaign against the Fed marks a significant departure from presidential norms surrounding the independence of the central bank. His aggressive tactics include calling for Powell’s resignation and even suggesting he could be fired, a move that could be illegal and destabilizing to global markets.
The Fed has maintained the short-term interest rate at 4.3% this year, after three cuts last year, as it monitors the economic impact of Trump’s sweeping tariffs on imports. Powell has expressed caution, indicating that these tariffs could drive inflation upwards, a stance that has frustrated Trump.
In a recent statement, Trump asserted, “When you spend $2.5 billion on, really, a renovation, I think it’s really disgraceful.” This rhetoric underscores the urgency of his campaign as he pushes for lower borrowing costs to stimulate the economy and alleviate the federal government’s debt burden.
As Trump prepares for his visit, the implications of his actions could reverberate through financial markets, with analysts warning that his aggressive stance may have unintended consequences. Observers are watching closely to see how this confrontation unfolds and what it might mean for economic policy moving forward.
Stay tuned for updates as this story develops.
