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Trump criticizes Fed chairman Powell over costs

Trump publicly scorns Powell for renovation costs during a visit to the Federal Reserve.

July 25, 2025 at 01:59 AM

Trump publicly scorns Fed chair Jerome Powell

Trump's harsh comments about Powell reflect the tension between the White House and the Federal Reserve.

Trump criticizes Fed chair Jerome Powell over renovation costs

President Donald Trump made headlines on Thursday during a visit to the Federal Reserve headquarters in Washington. He publicly criticized Fed chairman Jerome Powell regarding the rising costs of a $2.5 billion renovation project. While Trump claimed the costs were actually $3.1 billion, Powell clarified that the new figure included expenses from a renovation completed five years ago. Trump's remarks came amid ongoing tensions between him and Powell, especially regarding interest rates and the Fed's independence from political influence.

Key Takeaways

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Trump's criticism indicates growing frustration with Fed policies.

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The renovation cost dispute showcases tensions between the White House and the Fed.

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Powell's clarification of costs underscores the complexities of public projects.

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Trump has hinted at firing Powell over interest rate decisions.

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The Fed aims to manage inflation carefully amid trade tariffs.

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Preserving the Fed's independence is vital for economic stability.

"I don’t want to put this in that category."

Trump refrained from labeling the renovation cost as a fireable offense for Powell.

"The Fed wants to see how the economy responds to Trump’s sweeping tariffs."

Powell emphasizes the need to gauge economic effects before adjusting rates.

Trump's critique of Powell serves to highlight a deeper conflict between the administration and the Federal Reserve's autonomy. As Trump pushes for lower interest rates to encourage economic growth, he faces a Fed that prioritizes data-driven decision-making. This clash raises pressing questions about the limits of presidential influence over the central bank. Should the Fed's independence be compromised, it could significantly affect market confidence and economic stability.

Highlights

The president's frustration is palpable as he questions the Fed's spending.
Powell's defense of the renovation shows a clash of priorities.
How much should the Fed's independence weigh against political pressure?
Inaccuracy in project costs amplifies tensions between Trump and Powell.

Political tensions over Federal Reserve management

Trump's public criticism of Powell raises concerns about the influence of political pressure on the Fed's independence, potentially undermining its role in stabilizing the economy.

How this tension evolves will be crucial for the future of U.S. monetary policy.

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trump powell federal reserve economy renovation politics economy

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