White House Escalates Pressure on Fed Chair via Headquarters Renovation

President Donald Trump is intensifying his campaign to pressure Federal Reserve Chairman Jerome Powell to lower interest rates or resign by targeting the costly renovation of the Fed's headquarters, alleging violations of government building rules. Trump's top budget adviser, Russ Vought, sent a letter expressing concern over the 'ostentatious overhaul,' and Trump appointed two close aides to the National Capital Planning Commission to scrutinize the renovation plans further. This move is part of an unprecedented effort to challenge the Fed's traditional independence, with Trump openly criticizing Powell and calling for his immediate resignation. Powell has resisted the pressure to cut rates due to concerns about inflation and the potential impact of Trump's tariff policies on consumer costs, maintaining a cautious stance despite the president's insistence that inflation is no longer a problem. If Trump succeeds in forcing Powell out or lowering rates, it would mark a significant expansion of presidential influence into a domain historically shielded from political interference, raising concerns about the central bank's autonomy. So far, Powell and Fed officials have avoided direct responses to the escalating political pressure.