US government against FED: US Minister checks Fed renovation-but no powell resignation

The US government continues to put pressure on the central bank boss Jerome Powell, which is unpopular. Finance Minister Scott Bessent calls for a review of the renovation of the central bank Fed’s headquarters in Washington.

In a contribution on the internet platform X, Bessent made it clear that he had no knowledge or opinion on the legal basis for the renovation work. However, there should be a review of the decisions for this project. Bessent does not see any reasons for Powell’s resignation as a central bank chief.

Powell has long been a thorn in the side of the US President Donald Trump. Trump repeatedly demanded key interest rates, while Powell relies on a prudent monetary policy in the face of existing inflation risks and hesitates with interest rate cuts.

Besser sees no reason for Powell’s resignation

In an interview with the “Fox Business” economic news broadcaster, Bessent also made it clear that, despite the required review of the renovation costs, he sees no reason for a resignation. Nothing indicates that he should resign immediately, said Bessent. If Powell wanted to keep office until the end of his term in May, he would be happy to do so, the minister assured.

Finally, the increased costs of a renovation of the central bank Powell were charged, which lifted the procedure of the US government against the central bank boss on a new level. Last week there were media reports that Powell’s dismissal was imminent. Trump immediately denied the reports after the financial markets had negatively reacted to the reports.

Hurders for discharge are high

The hurdles for the discharge of the central bank manager are high. This requires an “important reason”. The question of whether a US president can relieve a central bank boss is not legal.

Trump had recently said that the central bank renovation could be such a reason. “If you spend $ 2.5 billion for a renovation, I think that’s really shameful,” criticized Trump.