Powell

U.S. President Donald Trump spent months attacking the head of the U.S. Central Bank on social media and addressed reporters, saying Fed Chairman Jerome Powell’s name was “Numbskull.”

The dispute rolled with cameras Thursday as two men clashed over the cost of building renovations.

The tense moment is because Trump has been escalating on Powell, who said that Powell’s pressure is too slow to lower interest rates.

He repeatedly surfaced the possibility of firing Powell just to quickly deny the idea, analysts say it would rock the financial markets and spark a legal battle.

Trump’s visit to the Fed is the first time he served as the current president in about two decades.

Policymakers are widely voted to keep interest rates unchanged ahead of the Fed’s meeting in Washington next week.

Trump told reporters at the start of the tour that the government is “looking at what is going on” for a $2.7 billion (£1.8 billion) renovation.

“It seems like this is about $3.1 billion,” Trump said as Powell shook his head.

“I don’t know this.” Powell shot backward. “I haven’t heard of anyone from the Fed yet.”

Trump then made a document from his coat pocket, which Powell read briefly and handed to the president wantonly, saying that Trump was “adding a third building” to the total.

“This is a building built,” Trump said.

Powell replied: “This is a building built five years ago…it’s nothing new.”

The reporter also asked Trump what he would have as a real estate developer to do with a project manager whose budget exceeds the budget.

“Generally speaking, I’m going to fire him,” he replied.

After visiting the Fed, Trump wrote on social media that construction “has a long way to go, and it would be better if it never started, but that’s the truth.”

“Cost overruns are huge,” he said, but the United States is “almost affordable.”

“Let’s get it done, and even more importantly, lower interest rates!” Trump said: “

Under U.S. law, it is often considered a major misconduct to be the only one who can be removed from the central bank.

Protection is designed to help banks from political pressure and ensure that their leaders develop policies for the best interests of the economy.

Legal experts say overruns on construction projects usually do not meet the bar.

During the visit, Trump was asked if Powell could say anything that might prompt him to backfire on criticism, saying he would “like lowering interest rates.”

Still, White House officials and Trump allies honed on renovation issues.

The attacked renovation project was first approved in 2017 to allow banks to consolidate their operations.

It involves two buildings from the 1930s.

The Fed blames cost overruns on issues such as finding more asbestos than expected and controversial about other aspects of the project, such as whether it involves a “VIP elevator.”

Trump alternately calls Powell a “stubborn M-son” and “Trump Hater”. He told reporters this month that he believed the mismanagement of the plan was “a bit of a crime.”

Trump nominated Powell as Fed Chairman during his first presidency in 2017. His term as chairman is scheduled to end in May 2026.

Democrats accuse Trump of trying to exploit his attack on Powell as he faces pressure to support the foundation Jeffrey Epstein file.

They also believe that if the U.S. economy weakens, he is setting up Powell as a scapegoat.

Typically, the Fed lowers fees when the economy is in trouble, hoping that by making borrowing easier to borrow it will promote economic activity and keep employment stable.

It raises interest rates when it is concerned about inflation, aiming to slow activity and relieve pressure on prices.

Economists say that fundamental changes in Trump’s economic policy, including higher tariffs, tax cuts, reduced government spending and crackdowns on immigration, add to the risk of both scenarios, making it difficult to know what banks should do.

Powell said he believes the economy is stable enough that the Fed can wait for what to do.

Trump said the bank should lower interest rates to reduce the huge borrowing costs of the U.S. government and make it easier for Americans to obtain mortgages and other loans.

He insisted that inflation rose to 2.7% in June, which is a problem.