Renovation of the US Federal Reserve
Trump is considering a lawsuit against Central Bank boss Powell
US President Donald Trump names the billion dollar renovation of the Federal Reserve as the reason for a possible lawsuit against FED leader Powell. At its core, however, he should be about something else.
US President Donald Trump is considering a lawsuit against the US Federal Reserve boss Jerome Powell-supposedly because of the unexpectedly high renovation costs of the financial institution. The head of the Federal Reserve (FED) did a “terrible and incompetent work” in the conversion of the bank building, Trump Powell accused Truth Social Platform.
After giving different numbers in the past few weeks, Trump claimed this time that the renovation work was said to cost $ 3 billion. Trump repeatedly uses the significantly increased renovation costs as an argument to force Powell’s dismissal. However, the hurdles for this are high, it is necessary to have an “important reason”. Legally, it is not fully clarified whether a US president can dismiss a central bank boss at all.
In essence, it’s about something different
In essence, Trump is primarily concerned with a reduction in the key interest rate, which the US Federal Reserve has been stable at a high level for months. That would boost the economy and save the government many billions in debt service.
According to economists, a reduction in the key interest rate could also heat inflation. In any case, Powell has so far opposed claims for a interest in the interest and thus became targeted by the US president.
Even if Trump likes to represent it differently, the leading interest rate does not only decide on a central bank boss Powell alone, but the entire central bank council.
Trump ensures head shake at Powell
At the last public encouragement between Trump and Powell, the central bank boss had warded off an attack by the US President in front of the camera. Trump confronted him with supposed renovation expenditure of $ 3.1 billion.
“I haven’t heard that from anyone,” Powell replied and visibly shook his head. With a view of a letter from Trump, the Fed boss also found: “This is a building that was already being built. It was completed five years ago.” Trump had previously spoken of $ 2.5 billion.
dpa
Source: Stern
