Trump vs Powell: Monetary policy could hinge on office renovations

But the risks are much higher: monetary policy in the most important central bank in the world and its independence from political pressure.

This argument comes at a time when President Donald Trump is still calling on the Chairman of the Board to reduce interest rates Jerome Powell. But Powell and most federal reserve policy makers have maintained the waiting and vision approach, saying that Trump’s tariff may be later later this year.

Now the White House is accusing Powell of the Federal Reserve official, a self -funded agency, as well as renovations at the central bank’s headquarters in Washington, DC.

In a letter sent to the President of the Federal Reserve on Thursday, the director of the Administration and Budget Office pointed out that the costs of the project have exceeded and raised questions about his compliance with the National Capital Planning law, which requires the committee to renew the approval plans.

Paul’s latest data suggests that there are no plans for a dining room for a dining room, new marble, private elevators, new water features, or on the surface indicating that plans were changed from what was approved in 2021, according to the message, which also included approximately ten questions in the project.

“Although simple deviations from the approved plans may be inevitable, your testimony appears to reveal that the project does not comply with the approved plan with regard to the main design elements,” Feon wrote.

In an interview with CNBC on Friday, he called for an investigation into the project and said it was time to reduce interest rates. When asked if the renewal is linked to Powell’s Powers, Vite answered [interest rates] It is one side of it. ”

On Sunday, the director of the National Economic Council, Kevin Haysit, increased the bet, indicating that the Powell function may be at stake.

When ABC News was asked whether the renewal can be used as a reason for the shooting on Powell, Hasit said: “I think that whether the president decides to pay this road or not much depends on the answers we ask the questions that Ross sent to the federal reserve.”

For his part, Trump previously denied that he would shoot Powell, but he said that he should “resign immediately”, if the allegations that he had misled the legislators over the renovations. Meanwhile, Powell said that Trump could not shoot him, and this year the Supreme Court ruled that federal reserve officials have greater protection from termination.

He will open a seat in the Governor Council early next year, which will allow the president to nominate a potential alternative to heal. George Saravilus, head of FX strategy in Deutsche Bank, said in a memo that financial markets are under the risk of overthrowing him.

The Federal Reserve responds to the White House attacks

CNBC reported that the Federal Reserve has updated the web pages of the questions that were repeatedly asked on Friday with details that seem to appear to have claims from the Trump administration.

The Federal Reserve said that the renewal will remove asbestos and lead bullets, as well as replace electricity, plumbing, bacteria and air conditioning systems. The main structural work will also raise the buildings to a code on the standards of access, security and safety.

He attributed the costs of costs to the changes resulting from consultations with the audit agencies; Actual costs of materials, equipment and work; Unexpected conditions such as more asbestos are more than toxic pollution expected in the soil, and to demand higher water than expected.

Common questions also dealt with details like Marble, VIP DINING ROOM, new elevator, water features and garden terrace.

Before the current project, the Fed’s Marriner S. Eccles has not been repaired before.

“Although the periodic maintenance and work have been completed to preserve the operating building (including a project in the late nineties), there has been no comprehensive renewal since it was built about 100 years ago,” the Federal Reserve said.

But even installing the new Federal Reserve Chairman, who is more compatible with Trump, will not ensure that the prices will decrease.

Powell’s term ends as Chairman of the Board of Directors of the Federal Reserve Bank in May, but his term in the board of directors extends to January 2028. This means that he will remain qualified to work as the head of the Federal Committee in the Open Market, which determines its leadership and determines the rates that Trump wants to decrease.

In addition, whatever the next Federal Reserve Chair, or not Trump, must work with the rest of FOMC, which is moved by consensus, as it is rare that there are a few defectors in the policy decision, said Ed Yardini, the head of Yardini’s research, in note last week.

If the loyalists take over his duties and it is too much in monetary policy compared to the rest of FOMC, the chair can be superior.

Yardini warned: “This would seriously weaken the strength of the Federal Reserve Chair and raise concerns about the internal conflict with the Federal Reserve.”