A week ago, US President Donald Trump called Jerome Powell, chairman of the Federal Reserve. Suddenly on July 24, he reached the Federal Reserve building. He saw the work of the ongoing repair in the building with Powell. After that he said that he has no plan to remove Powell from the post. The renovation of the Fed building has been going on for some time. The renovation of two fed buildings will cost $ 2.5 billion.
Trump has been continuously targeting Powell
Trump’s relationship with Fed Chief Jerome Powell has not been good for the last several months. Since becoming the President of America on January 20 this year, Trump has been continuously pressurizing Powell to reduce interest rate. Despite his saying, his anger has increased when Powell’s interest rate is not reduced. Last week, he told Powell to Numbskull. Rarely ever before, any US President would have called the Fed Chief stupid.
Trump threatened to remove Powell from post
Trump had earlier threatened Powell several times to remove Powell from the post of Fed Chief. However, it is not easy for them. However, many people had criticized such behavior of a person sitting in a constitutional position. Later, Trump questioned Powell’s decision of Renovation of Fed’s buildings. He described the $ 2.5 billion on it as extravagance. He believed that Powell should not have spent so much when he was trying to cut the government’s expenses.
Trump said that the expenditure on renovation of Fed building is more
On July 24, Trump spoke to the media after watching the renovation work of Fed’s building. He said, “This (removing Powell) will be a big step and I don’t think it needs it.” He later posted a post on his social media platform Truth. In this, he said about the renovation of the Fed’s building, “It is fine as it is, I hope it will be completed as soon as possible. The expenditure on it is very high. But the good thing is that our economy is performing good and we can spend anything.” This is a sign of major changes in their attitude.
Despite the pressure of Trump, Powell has not reduced the interest rate
Trump believes that the Fed Chief should reduce the interest rate by 3 % or more. Powell has not reduced interest rates in 2025 despite continuous pressure. Experts say that Powell will decide to decrease rates based on the status of the economy and the trend of inflation. The American economy shows signs of improvement. However, the picture about tariff is not clear yet. The US is talking for the deal with many countries about tariffs. These include India. Trump has said that the countries with which the deal is not done by July 31 will be implemented from 1 August.