This article is from the source 'bbc' and was first published or seen on . The next check for changes will be

You can find the current article at its original source at https://www.bbc.com/news/articles/c1ljlvg1e7eo

The article has changed 7 times. There is an RSS feed of changes available.

Version 2 Version 3
Trump to visit Fed as pressure on Powell mounts Trump bickers with Powell over Fed renovation costs
(about 3 hours later)
Donald Trump is set to make the first visit by a sitting president to the US central bank in roughly two decades as his pressure on the Federal Reserve intensifies. Watch: Trump jokes he wants Powell to lower interest rates in awkward exchange
Trump will tour buildings undergoing a $2.5bn (£1.8bn) renovation, which the White House has accused Fed chairman Jerome Powell of mismanaging. US President Donald Trump has spent months attacking the head of the US central bank on social media and in remarks to reporters.
The attack is the latest in a drumbeat of criticism Trump has mounted against Powell, who Trump says is moving too slowly to cut interest rates. On Wednesday, his dispute with Federal Reserve chairman Jerome Powell played out in person, with cameras rolling, as the two men clashed over the cost of renovations in buildings the White House has accused of mismanaging.
The tense incident came as Trump has been escalating his pressure on Powell, who Trump says is moving too slowly to cut interest rates.
He has repeatedly floated the possibility of firing Powell, only to quickly disavow the idea, which analysts say would rock financial markets and spark a legal battle.He has repeatedly floated the possibility of firing Powell, only to quickly disavow the idea, which analysts say would rock financial markets and spark a legal battle.
Trump's visit would mark only the fourth visit by a president to the Fed in recent history and the first since former president George W Bush attended the swearing-in of Ben Bernanke as Fed chairman in 2006. Trump's visit to the Fed is the first by a sitting president in roughly two decades.
It comes ahead of the Fed's meeting in Washington next week, where policymakers are widely expected to vote to leave interest rates unchanged.It comes ahead of the Fed's meeting in Washington next week, where policymakers are widely expected to vote to leave interest rates unchanged.
A spokesperson for the Fed said it was "working with the White House to accommodate their visit". Speaking to reporters at the start of the tour, Trump said that the administration was "taking a look at what's happening" at the Fed's $2.7bn (£1.8bn) renovation.
"It looks like it's about $3.1bn," Trump said, as Powell shook his head besides him.
"I'm not aware of that," Powell shot back. "I haven't heard that from anybody at the Fed."
Trump then produced a document from his jacket pocket, which Powell briefly read and brusquely handed back to the president, saying that he is "adding a third building" to the total.
"It's a building that's been built," Trump said.
Powell responded: "It's a building that was built five years ago...it's not new."
Trump was also asked by a reporter what he, as a real estate developer, would do with a project manager who was over budget.
"Generally speaking, I'd fire him," he responded.
Under US law, governors of the central bank can only be removed "for cause", typically understood to be major misconduct.Under US law, governors of the central bank can only be removed "for cause", typically understood to be major misconduct.
The protection was intended to help insulate the bank from political pressure and ensure its leaders set policy in the best interests of the economy.The protection was intended to help insulate the bank from political pressure and ensure its leaders set policy in the best interests of the economy.
Legal experts have said cost overruns on the construction project would not typically meet that bar.Legal experts have said cost overruns on the construction project would not typically meet that bar.
But White House officials and Trump allies have honed in on the issue, with press secretary Karoline Leavitt describing the renovation as "overpriced" and "completely unnecessary". During the visit, Trump was asked whether Powell could say anything that could prompt him to back away from criticism, he said that he would "love to lower interest rates".
Still, White House officials and Trump allies have honed in on the renovation issue.
Trump - who has alternately referred to Powell as a "numbskull", "stubborn mule" and "Trump hater" - told reporters this month that he believed mismanagement of the plan was "sort of" a fireable offence.Trump - who has alternately referred to Powell as a "numbskull", "stubborn mule" and "Trump hater" - told reporters this month that he believed mismanagement of the plan was "sort of" a fireable offence.
"When you spend $2.5bn on, really, a renovation, I think it's really disgraceful," he said. He also that it was "highly unlikely" that he would fire Powell "unless he has to leave for fraud".
This week, Leavitt told reporters that Trump has "no plans" to fire Powell, although he should "cut interest rates".
Democrats have accused Trump of trying to use his attacks on Powell to "distract and deflect", as he faces pressure from his support base over his handling of Jeffrey Epstein files.Democrats have accused Trump of trying to use his attacks on Powell to "distract and deflect", as he faces pressure from his support base over his handling of Jeffrey Epstein files.
They have also argued he is setting up Powell to be the scapegoat should the US economy weaken.They have also argued he is setting up Powell to be the scapegoat should the US economy weaken.
The renovation project at the Fed was first approved in 2017The renovation project at the Fed was first approved in 2017
Typically, the Fed lowers rates when the economy is in trouble, hoping that by making it easier to borrow it will boost economic activity and keep employment stable.Typically, the Fed lowers rates when the economy is in trouble, hoping that by making it easier to borrow it will boost economic activity and keep employment stable.
It raises interest rates when it is worried about inflation, aiming to slow activity and ease pressures pushing up prices.It raises interest rates when it is worried about inflation, aiming to slow activity and ease pressures pushing up prices.
Economists say Trump's radical changes to economic policy, including higher tariffs, tax cuts, reductions in government spending and a crackdown on immigration, have raised risks of both scenarios, making it difficult to know what the bank should do.Economists say Trump's radical changes to economic policy, including higher tariffs, tax cuts, reductions in government spending and a crackdown on immigration, have raised risks of both scenarios, making it difficult to know what the bank should do.
Powell has said he believes the economy is stable enough for the Fed to wait to see what happens.Powell has said he believes the economy is stable enough for the Fed to wait to see what happens.
Trump has said the bank should be cutting interest rates to reduce the US government's hefty borrowing costs and to make it easier for Americans to get mortgages and other loans.Trump has said the bank should be cutting interest rates to reduce the US government's hefty borrowing costs and to make it easier for Americans to get mortgages and other loans.
He maintains that inflation, which rose to 2.7% in June, has faded as a problem.He maintains that inflation, which rose to 2.7% in June, has faded as a problem.
Powell was appointed by Trump to lead the bank in 2017, and renominated by Joe Biden. His term as chairman is set to end in May 2026.Powell was appointed by Trump to lead the bank in 2017, and renominated by Joe Biden. His term as chairman is set to end in May 2026.
The renovation project under attack was first approved in 2017 and was intended to allow the bank to consolidate its operations.The renovation project under attack was first approved in 2017 and was intended to allow the bank to consolidate its operations.
It involves two buildings from the 1930s.It involves two buildings from the 1930s.
The Fed has blamed the cost overruns on issues such as finding more asbestos than expected, and disputed White House characterisations of other aspects of the project, such as whether it involves a "VIP elevator".The Fed has blamed the cost overruns on issues such as finding more asbestos than expected, and disputed White House characterisations of other aspects of the project, such as whether it involves a "VIP elevator".
Reporting contributed by Bernd Debusmann Jr
Trump on firing Powell: 'We're not planning on doing anything'Trump on firing Powell: 'We're not planning on doing anything'