By Chris Megarian, Associated Press
WASHINGTON (AP) — President Donald Trump plans to step into the Federal Reserve on Thursday as allies scrutinize renovations to expensive buildings.
Trump administration officials have used concerns about building overhauls to question Fed Chairman Jerome Powell’s decision-making. They are scheduled to inspect the site on Thursday, and the White House announced that the president would also be visiting late Wednesday.
The visit reflects Trump’s neglect of the Fed’s traditional independence, which plays a fundamental role in the American economy by setting monetary policies that appear to have no political impact.
While previous presidents have criticised the Fed’s decision, Trump’s sustained campaign is unusual, and his critics say a dangerous departure from the norm. He called on Powell to resign, repeatedly humiliating him, suggesting that he could be fired.
Recently, Trump said he had no plans to kick Powell out, but that could be illegal. Pushing Powell out could send shockwaves through global markets, and could have the opposite effect if Trump lowers borrowing costs.
Republican Trump appointed Powell during his first term, with Democrat Joe Biden extending his tenure. Powell’s term will not end until the next May, and he had previously insisted he would serve until then.
Not everyone in Trump’s administration agrees with the president’s claim that Powell needs to resign.
“There’s nothing to tell me he should resign right now,” said Scott Bescent, Treasury Department, whose Trump emerged as a potential alternative to Powell in a recent interview with the FOX Business. “He was a good civil servant.”
Trump has been criticizing Powell for months as he maintains a short-term interest rate that controls Fed management at 4.3% this year after cutting three times last year. Powell says the Fed wants to see how the economy reacts to Trump’s drastic tariffs on imports, and Powell could push inflation up.
Powell’s attention infuriated Trump. Trump has called for the Federal Reserve cuts to cut the rates the federal government pays on debt.
Trump will soon be disappointed again. The major Fed committees are expected to maintain their fees where they are when they meet next week.
The Fed is renovating Washington’s headquarters and nearby buildings. Estimated costs have surged from $1.9 billion to around $2.5 billion as building materials spiked prices after some construction occurred underground and inflation spiked in 2021 and 2022.
When asked last week if expensive reconstruction could be the basis for firing Powell, Trump said, “I think it’s kind of a thing.”
“The truth is, they’re actually spending $2.5 billion, Trump said, “I think it’s a real dishonor.”
Original issue: July 24th, 2025, 8:57am EDT
