Trump Escalates Pressure on Fed Chair Powell Amid $2.5B Renovation Dispute

President Donald Trump has escalated his campaign against Federal Reserve Chair Jerome Powell, demanding lower interest rates and criticizing Powell's management of the Fed's $2.5 billion headquarters renovation. Trump has used derogatory language toward Powell and hinted at firing him, citing alleged fraud in the renovation project as a potential cause, though legal experts note the difficulty of removing a Fed chair. The renovation's cost overruns are attributed by the Fed to tariffs, inflation, and construction challenges, while Trump and some administration officials claim mismanagement and misleading statements by Powell. Despite internal divisions within the administration, including defenses of Powell by Treasury Secretary Scott Bessent, Trump plans to visit the Fed headquarters amid these tensions. Inflation remains above target, complicating Powell's stance against cutting rates immediately, as the Federal Reserve prioritizes controlling inflation. Analysts warn that Trump's pressure on the Fed threatens the institution's independence and could have unintended economic consequences.