In an unusual gesture, the US president will personally visit the headquarters of the Central Bank in the middle of strong criticism of Jerome Powell and suspicions about a millionaire extra costs in the renewal of the building.
The president of the United States, Donald Trumpyou will visit this Thursday night the headquarters of the Federal Reserve In Washington, as confirmed by the White House. The meeting occurs in a context of growing tensions with the head of the Central Bank, Jerome Powelland under the focus of a public investigation on the cost overruns of the ambitious renewal plan of the Fed building.
The delegation will include several senior executive officials, including the Cabinet Subrizage, James Blairwho days ago had already advanced that there would be face -to -face meetings with Fed authorities to evaluate the progress of the remodeling plan, whose initial budget of US $2.5 billion It was surpassed in at least US $700 millionaccording to transcended.
Pressures on monetary policy
Beyond the infrastructure, the visit has a marked political component. Trump was a constant critic of Powell’s actions at the head of the agency, especially because of the decision not to advance with new Interest rates cutsdespite the requests of the Executive. The president even suggested the possibility of Remove Powell If irregularities were proven in the management of the renewal project.
From the Federal Reserve, however, they have been firm in their focus. Powell has repeatedly warned the need for prudence against inflationary pressures still latent in the US economy, many of them associated with Tariff measures adopted by Trump administration itself.
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So far this year, the Fed has kept the reference rate without changes, after applying cuts for a total of a percentage point in 2024. The market anticipates that at the meeting scheduled for next week the Federal Open Market Committee (FOMC) will return to leave the rates.
Trump’s decision to go to the Headquarters of the Central Bank is not recent and reinforces the perception of growing political pressure About monetary authority. Analysts agree that this gesture could be interpreted as an attempt by the president for marking agenda in the prelude to key definitions in economic matters, in a year that already shows clear signs of institutional tension between the Executive Power and the Federal Reserve.
Source: Ambito
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