(The Guardian) Trump and Powell clash on camera over Federal Reserve renovation cost
Donald Trump just attempted to ambush Jerome Powell, the Federal Reserve chair, during his site visit to inspect the renovation of the central bank’s historic headquarters in Washington.
When Trump paused before reporters to make a statement, he beckoned Powell over to stand next to him on camera. The president then claimed that the total cost of the renovations to the Federal Reserve buildings was $3.1bn, a higher figure than had previously been reported. As Trump made this claim, Powell nodded his head no, to signal his disagreement. “I’m not aware of that,” Powell said. “I haven’t heard that from anybody at the Fed.”
Trump insisted that this new figure “just came out” and removed papers from his coat, as apparent proof, and handed them to Powell. “This came from us?” Powell asked.
After Trump said that the new figures had come from his people, Powell discovered why the figure for the renovation was suddenly much larger. “You included a third building,” he said. Trump insisted that the third building was part of the total cost of the renovation he has accused Powell of mismanaging in an effort to find some cause to remove the independent Fed chairman who has refused to lower interest rates at the president’s request. The third building Trump suddenly claimed is part of the renovation, Powell explained, “was built five years ago. It’s not new.”
Trump was flanked by his staunch ally, Republican senator Tim Scott of South Carolina, who also suggested that the renovations had gone too far over budget. Powell, asked if they expected any further cost overruns, replied, “Don’t expect them” but said that the independent central bank was “ready for them” if necessary.
Trump then called on a friendly reporter, who asked him what, as a builder, he “would do with a project manager who is over budget”. “Generally speaking, ”Trump said, “I’d fire him.”
As Trump, Powell and Scott stepped away from the media to continue the tour, Trump said that there is something that Powell could do to assuage his concerns about the cost of the renovations. “I’d love him to lower interest rates,” he said.
Powell has asserted, repeatedly, that the president does not have the power to fire him, as the head of an independent agency, and that decisions on interest rates must be immune to political pressure.
Donald Trump just attempted to ambush Jerome Powell, the Federal Reserve chair, during his site visit to inspect the renovation of the central bank’s historic headquarters in Washington.
When Trump paused before reporters to make a statement, he beckoned Powell over to stand next to him on camera. The president then claimed that the total cost of the renovations to the Federal Reserve buildings was $3.1bn, a higher figure than had previously been reported. As Trump made this claim, Powell nodded his head no, to signal his disagreement. “I’m not aware of that,” Powell said. “I haven’t heard that from anybody at the Fed.”
Trump insisted that this new figure “just came out” and removed papers from his coat, as apparent proof, and handed them to Powell. “This came from us?” Powell asked.
After Trump said that the new figures had come from his people, Powell discovered why the figure for the renovation was suddenly much larger. “You included a third building,” he said. Trump insisted that the third building was part of the total cost of the renovation he has accused Powell of mismanaging in an effort to find some cause to remove the independent Fed chairman who has refused to lower interest rates at the president’s request. The third building Trump suddenly claimed is part of the renovation, Powell explained, “was built five years ago. It’s not new.”
Trump was flanked by his staunch ally, Republican senator Tim Scott of South Carolina, who also suggested that the renovations had gone too far over budget. Powell, asked if they expected any further cost overruns, replied, “Don’t expect them” but said that the independent central bank was “ready for them” if necessary.
Trump then called on a friendly reporter, who asked him what, as a builder, he “would do with a project manager who is over budget”. “Generally speaking, ”Trump said, “I’d fire him.”
As Trump, Powell and Scott stepped away from the media to continue the tour, Trump said that there is something that Powell could do to assuage his concerns about the cost of the renovations. “I’d love him to lower interest rates,” he said.
Powell has asserted, repeatedly, that the president does not have the power to fire him, as the head of an independent agency, and that decisions on interest rates must be immune to political pressure.
