Federal Reserve renovations: US president Donald Trump and Federal Reserve Chairman Jerome Powell shared a visibly awkward encounter on Thursday during a tour of the central bank’s newly renovated headquarters, which Trump sharply criticised as excessive, as per a report. However, standing beside Powell and Sen. Tim Scott (R-S.C.), Trump told reporters that there was “no tension” between him and the Fed chair, despite weeks of public rebukes and the awkward on-camera exchange during the visit, as reported by Fox Business.
Donald Trump Tours Federal Reserve HQ, Downplays Tension with Jerome Powell
After Trump’s talks with the Fed chair during the visit, he said, “I thought we had a good meeting. I really, no, there was no tension. It was no tension. I think he had more tension with my great senator to the right,” as quoted in the report.
Even Scott said that, “We had an honest, candid conversation about some of the overruns at this building,” adding, “We had it in my banking committee, and [Powell] said we were wrong. And it turns out we were right. Thank God President Trump and his team took enough time to dig into some of the details,” as quoted by Fox Business.
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Trump’s Frustration With Fed Chair
At the heart of the friction between the US president and Fed Chair is Trump’s growing frustration with Powell for not lowering interest rates, which he believes are stalling economic growth, according to Fox Business. He has repeatedly criticised Powell in recent weeks, linking his frustration over rates with what he calls “luxurious” and “bloated” spending on the Federal Reserve’s renovation, as per Fox Business.
Trump and Powell Clash Over $3.1 Billion Fed Renovation Costs
Trump’s “no tension” comment came after an awkward conversation, when he said, “We’re taking a look, and it looks like it’s about $3.1 billion – went up a little bit, or a lot,” and added, “So, the $2.7 [billion] is now $3.1 [billion],” as quoted in the report.
Powell, who was taken aback, responded, saying, “I’m not aware of that, Mr. President,” and added that, “I haven’t heard that from anybody at the Fed,” as quoted by Fox Business report.
Trump then said, “It just came out,” and then turned to Powell and shot back as he pulled out a piece of paper from the breast pocket of his coat and handed it to the Fed Chair, as reported by Fox Business. While even Sen. Scott agreed with the US president, saying he had heard the total was $3.1 billion, as per the report.
Powell asked Trump, “This came from [the Federal Reserve]?” and Trump confirmed it, according to the report. After a few awkward seconds, the Fed chair read the letter and then told Trump that the larger number includes renovations that have already been completed, as reported by Fox Business. He questioned, “Are you including the Martin renovation?” adding, “You just added in a third building is what that is. That’s a third building. … It’s not new,” as quoted by Fox Business.
Trump responded, saying, “It’s part of the overall work,” as quoted in the report.
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Trump Avoids Direct Call to Fire Powell Amid Renovation Dispute
Then, he was asked if he saw a cause to fire Powell, Trump responded saying, “I’m here just really with the chairman. He’s showing us around, showing us the work. And, so, I don’t want to get that,” adding, “I don’t want to be personal. I just would like to see it get finished,” as quoted in the report.
FAQs
Why did Trump and Powell have an awkward moment?
Trump questioned the cost of the Federal Reserve’s renovations, catching Powell off guard during their tour.
Was there tension between Trump and Powell?
Trump said there wasn’t, but the interaction appeared tense on camera.