Trump says he would remove Powell if it didn’t ‘disturb the market’
Former President Donald Trump stated that he would remove Federal Reserve Chairman Jerome Powell “in a heartbeat” if it did not risk disturbing the financial markets. Though, Trump acknowledged that he is unlikely to act before Powell’s term ends in seven or eight months, and plans to appoint someone else afterward. Trump’s criticism of Powell centers on his refusal to lower interest rates as Trump desired, and on the expensive and over-budget renovation of the Federal Reserve’s headquarters, which Trump claims is excessively costly and poorly managed. Trump described the renovation as needless and compared it to building a palace. Recently, Trump has intensified his pressure on Powell to resign, especially after the unexpected resignation of Fed Governor Adriana Kugler, a Biden appointee, which creates another vacancy for Trump to fill. Trump also called for the Federal Reserve Board of Governors to intervene and lower interest rates if Powell continues to refuse.
Trump says he would remove Powell ‘in a heartbeat’ if it didn’t ‘disturb the market’
President Donald Trump said on Friday that he would most likely not remove Jerome Powell as chairman of the Federal Reserve because it would cause financial disruption.
“They say it would disturb the market. I would remove him in a heartbeat, but they say it would disturb the market,” he told Newsmax host Rob Finnerty in a sit-down interview inside the White House. “He gets out in seven or eight months, and I’ll put somebody else in.”
Trump’s comments come amid his feud with Powell over his refusal to lower interest rates as requested by the president and allegedly mismanaging the budget for a pricey renovation to the Fed’s headquarters in Washington, D.C.
When Finnerty asked whether the renovation was the cause of Powell’s firing, Trump bemoaned the project.
“It’s not that intricate inside to start off with. I do a lot of that. I built a very successful hotel on Pennsylvania Avenue,” he said, referring to the Waldorf Astoria, which he no longer owns.
Multiple news reports estimate the Fed renovation will cost $2.5 billion, but Trump maintains it will cost substantially more than that.
“I know more about renovating buildings,” he continued, “and I will tell you he’s got $2.9 billion that they’re spending on this thing. And really, more than that, if you include the whole project. And it’s way over budget by hundreds of millions of dollars.”
The project went over budget by roughly $700 million. Initial cost estimates were around $1.9 billion when the Fed announced the renovation in 2017.
“He shouldn’t be doing that,” Trump added. “It’s almost like he’s building a palace for himself, but he’s not going to be there much longer anyway. That’s the good news. He’ll never get to use it.”
Last week, Trump toured the Fed alongside administration officials and Powell. Interactions between the two were especially tense, as Trump has repeatedly pressured Powell to step down.
About two hours before the Newsmax interview, Trump again called on Powell to resign after a Fed governor unexpectedly left her position on Friday. The departure leaves Trump with a new vacancy to fill.
“‘Too Late’ Powell should resign, just like Adriana Kugler, a Biden Appointee, resigned,” the president posted on Truth Social. “She knew he was doing the wrong thing on Interest Rates. He should resign, also!”
FED GOVERNOR ADRIANA KUGLER UNEXPECTEDLY RESIGNS, GIVING TRUMP OPENING FOR PICK
Earlier Friday, Trump called on the Fed Board of Governors to take control if Powell does not cut interest rates soon.
“Jerome ‘Too Late’ Powell, a stubborn MORON, must substantially lower interest rates, NOW,” he posted. “IF HE CONTINUES TO REFUSE, THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!”
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