Trump suggests Fed renovations could be fireable offense for Powell

President Donald Trump suggested that a $2.5 billion renovation plan at the Federal Reserve might be sufficient cause to fire Fed Chair Jerome Powell, an escalation of his recent attacks against the central banker.

President Donald Trump suggested that a $2.5 billion renovation plan at the Federal Reserve might be sufficient cause to fire Fed Chair Jerome Powell, an escalation of his recent attacks against the central banker. “I think he’s terrible… But the one thing I didn’t see him as a guy that needed a palace to live in,” Trump told reporters. He said talking to Powell was like “talking to a chair” because of a lack of personality. “But the one thing I would have never guessed is that he would be spending two and a half billion dollars to build a little extension onto the Fed,” Trump said. A reporter asked if that was a fireable offense. “I think it sort of is,” Trump said. Trump has railed against Powell for months, demanding lower interest rates. But Fed officials have held rates steady this year, much to Trump’s ire. Nevertheless, the attacks have raised concerns that the data-dependent Fed could see its independence eroded. Markets favor independent central banks – monetary authorities that set interest rates based on data and clear mandates, rather than political considerations potentially pushed by elected officials.