Washington: Donald Trump is set to visit the US Federal Reserve on Thursday as he intensifies his criticism of its chairman, Jerome Powell, over the central bank's economic management. Trump, who has been vocal about his desire to remove Powell for not lowering interest rates, is reportedly considering firing the Fed chief over the escalating costs of a renovation project at the bank's Washington headquarters.
According to Bangladesh Sangbad Sangstha, the White House has not confirmed if Trump will meet Powell, who has committed to serving until his term concludes next May. However, any meeting between the two would likely be welcomed by the president. This visit comes as Trump attempts to redirect attention from the controversy surrounding his administration's handling of the Jeffrey Epstein case, which has recently resurfaced in the media.
Attorney General Pam Bondi previously informed Trump that his name appeared in Epstein-related documents, as reported by the Wall Street Journal. Amidst this backdrop, Trump has targeted various figures, including Democratic predecessors and former security chiefs, in a bid to overshadow the Epstein headlines. On Wednesday, Trump reiterated his dissatisfaction with Powell, criticizing him on social media for not reducing interest rates, which Trump claims is impacting the housing sector.
Presidential visits to the Federal Reserve are uncommon but not unprecedented, with past visits by Franklin D. Roosevelt, Gerald Ford, and George W. Bush. Such visits are often perceived as attempts to sway monetary policy. Trump has been critical of Powell for maintaining short-term interest rates at 4.3 percent this year, following rate cuts last year under Joe Biden's administration. Powell, on his part, has cited the economic impact of Trump's import tariffs as a factor to watch, warning they might drive inflation up.
The renovation costs for the Fed's headquarters have ballooned from $1.9 billion to $2.5 billion, drawing Trump's attention. In a recent letter, Trump's budget director, Russell Vought, expressed the president's concerns over the Fed's financial management. The Federal Reserve operates independently in its monetary policy decisions, with a 12-member Federal Open Market Committee making interest rate decisions.
Legal experts are dubious about Trump's power to dismiss Powell, particularly after a Supreme Court opinion suggested limitations on the president's authority to remove members of independent agencies like the Fed. Despite this, Trump has hinted that the renovation expenses might be grounds for Powell's dismissal.
Before his Fed visit, Trump is scheduled to sign executive orders at the White House, amidst ongoing criticism from supporters regarding his approach to the Epstein affair. Meanwhile, Justice Department officials plan to interview Ghislaine Maxwell, Epstein's incarcerated associate, in Florida on Thursday.