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Yahoo
5 days ago
- Business
- Yahoo
Trump to check out Federal Reserve's pricey renovations
The Federal Reserve, known for its tight lips, structured formality and extraordinary power to shape the global economy, finds itself putting out the welcome mat for President Donald Trump. Trump and his allies say a $US2.5 billion ($A3.8 billion) renovation of the Fed headquarters and a neighbouring building reflects an institution run amok — a belief they hope to verify in a Thursday afternoon tour of the construction site. The Fed allowed reporters to tour the building before the visit by Trump, who in his real estate career, has bragged about his lavish spending on architectural accoutrements that gave a Versailles-like golden flair to his buildings. The visit is an attempt to further ratchet up pressure on Fed Chair Jerome Powell, whom the Republican president has relentlessly attacked for not cutting borrowing costs. Trump's attacks have put the Fed, a historically independent institution, under a harsh spotlight. Undermining its independence could reduce the Fed's ability to calm financial markets and stabilise the US economy. "This stubborn guy at the Fed just doesn't get it — Never did, and never will," Trump said Wednesday on Truth Social. "The Board should act, but they don't have the Courage to do so!" On Thursday, reporters wound through cement mixers, front loaders, and plastic pipes as they got a close-up view of the active construction site that encompasses the Fed's historic headquarters, known as the Marriner S Eccles building, and a second building across 20th Street in Washington. Fed staff pointed out new blast-resistant windows and seismic walls that were needed to comply with modern building codes and security standards set out by the Department of Homeland Security. The Fed has to build with the highest level of security in mind, Fed staff said, including something called "progressive collapse," in which only parts of the building would fall if hit with explosives. Sensitivity to the president's pending visit among Fed staff was high during the tour. Reporters were ushered into a small room outside the Fed's boardroom, where 19 officials meet eight times a year to decide whether to change short-term interest rates. The room, which will have a security booth, is oval-shaped, and someone had written "Oval Office" on plywood walls. The Fed staff downplayed the inscription as a joke. When reporters returned through the room later, it had been painted over. Plans for the renovation were first approved by the Fed's governing board in 2017. Fed staff also said tariffs and inflationary increases in building material costs also drove up costs. Trump in 2018 imposed a 25 per cent duty on steel and 10 per cent on aluminum. Steel prices are up about 60 per cent since the plans were approved in June, while construction materials costs overall are up about 50 per cent, according to government data. Fed staff also pointed to the complication of historic renovations — both buildings have significant preservation needs. Constructing a new building on an empty site would have been cheaper. The Fed has previously attributed much of the project's cost to underground construction. It is also adding three underground levels of parking for its second building. Initially, the central bank proposed building more above ground, but ran into Washington, DC's height restrictions, forcing more underground construction. When construction began in 2022, the Fed estimated the cost at $US1.9 billion ($A2.9 billion), and it has since grown by about 30 per cent. Trump wants Powell to dramatically slash the Fed's benchmark interest rate under the belief that inflation is not a problem, but Powell wants to see how Trump's tariffs impact the economy before making any rate cuts that could potentially cause inflation to accelerate. The renovation project has emerged as the possible justification by Trump to take the extraordinary step of firing Powell for cause, an act that some administration officials have played down, given that the Fed chair's term ends in May 2026. Pushing Powell out also would almost certainly jolt global markets, potentially having the opposite effect that Trump wants as he pushes for lower borrowing costs. When asked last week if the costly rebuilding could be grounds to fire Powell, Trump said, "I think it sort of is". Sign in to access your portfolio
The Advertiser
5 days ago
- Business
- The Advertiser
Trump to check out Federal Reserve's pricey renovations
President Donald Trump plans to step foot in the Federal Reserve as his allies scrutinise its expensive building renovations, a highly personal and confrontational escalation of his campaign to pressure the central bank to slash interest rates. Trump administration officials have used concerns about the building overhaul to cast doubt on Fed Chairman Jerome Powell's decision-making. They were scheduled to inspect the site on Thursday, and the White House announced late Wednesday that the president would also be visiting. The visit reflects Trump's disregard for the traditional independence of the Fed, which plays a foundational role in the American economy by setting monetary policy that is supposed to be free of political influence. While previous presidents have criticised the Fed's decisions, Trump's sustained campaign is an unusual and, his critics say, dangerous departure from the norm. He has called on Powell to resign, insulted him repeatedly and suggested he could be fired. More recently, Trump has said he has no plans to oust Powell, which could be illegal. Pushing Powell out also would send shockwaves through global markets, potentially having the opposite effect that Trump wants as he pushes for lower borrowing costs. Trump, a Republican, appointed Powell during his first term, and President Joe Biden, a Democrat, extended his tenure. Powell's term doesn't end until next May, and he's previously insisted that he will serve until then. Not everyone in Trump's administration agrees with the president's contention that Powell needs to resign. "There's nothing that tells me that he should step down right now," said Treasury Secretary Scott Bessent, whom Trump has floated as a potential replacement for Powell, in a recent interview with Fox Business. "He's been a good public servant." Trump has criticised Powell for months because the chair has kept the short-term interest rate the Fed controls at 4.3 per cent this year, after cutting it three times last year. Powell says the Fed wants to see how the economy responds to Trump's sweeping tariffs on imports, which Powell says could push up inflation. Powell's caution has infuriated Trump, who has demanded the Fed cut borrowing costs to spur the economy and reduce the interest rates the federal government pays on its debt. Trump will likely be disappointed again soon. A key Fed committee is expected to keep rates where they are when it meets next week. The Fed has been renovating its Washington headquarters and a neighbouring building. With some of the construction occurring underground and as building materials have soared in price after inflation spiked in 2021 and 2022, the estimated cost has ballooned from $US1.9 billion ($A2.9 billion) to about $US2.5 billion ($A3.8 billion). When asked last week if the costly rebuilding could be grounds to fire Powell, Trump said: "I think it sort of is". "When you spend $US2.5 billion ($A3.8 billion) on, really, a renovation. I think it's really disgraceful," Trump said. President Donald Trump plans to step foot in the Federal Reserve as his allies scrutinise its expensive building renovations, a highly personal and confrontational escalation of his campaign to pressure the central bank to slash interest rates. Trump administration officials have used concerns about the building overhaul to cast doubt on Fed Chairman Jerome Powell's decision-making. They were scheduled to inspect the site on Thursday, and the White House announced late Wednesday that the president would also be visiting. The visit reflects Trump's disregard for the traditional independence of the Fed, which plays a foundational role in the American economy by setting monetary policy that is supposed to be free of political influence. While previous presidents have criticised the Fed's decisions, Trump's sustained campaign is an unusual and, his critics say, dangerous departure from the norm. He has called on Powell to resign, insulted him repeatedly and suggested he could be fired. More recently, Trump has said he has no plans to oust Powell, which could be illegal. Pushing Powell out also would send shockwaves through global markets, potentially having the opposite effect that Trump wants as he pushes for lower borrowing costs. Trump, a Republican, appointed Powell during his first term, and President Joe Biden, a Democrat, extended his tenure. Powell's term doesn't end until next May, and he's previously insisted that he will serve until then. Not everyone in Trump's administration agrees with the president's contention that Powell needs to resign. "There's nothing that tells me that he should step down right now," said Treasury Secretary Scott Bessent, whom Trump has floated as a potential replacement for Powell, in a recent interview with Fox Business. "He's been a good public servant." Trump has criticised Powell for months because the chair has kept the short-term interest rate the Fed controls at 4.3 per cent this year, after cutting it three times last year. Powell says the Fed wants to see how the economy responds to Trump's sweeping tariffs on imports, which Powell says could push up inflation. Powell's caution has infuriated Trump, who has demanded the Fed cut borrowing costs to spur the economy and reduce the interest rates the federal government pays on its debt. Trump will likely be disappointed again soon. A key Fed committee is expected to keep rates where they are when it meets next week. The Fed has been renovating its Washington headquarters and a neighbouring building. With some of the construction occurring underground and as building materials have soared in price after inflation spiked in 2021 and 2022, the estimated cost has ballooned from $US1.9 billion ($A2.9 billion) to about $US2.5 billion ($A3.8 billion). When asked last week if the costly rebuilding could be grounds to fire Powell, Trump said: "I think it sort of is". "When you spend $US2.5 billion ($A3.8 billion) on, really, a renovation. I think it's really disgraceful," Trump said. President Donald Trump plans to step foot in the Federal Reserve as his allies scrutinise its expensive building renovations, a highly personal and confrontational escalation of his campaign to pressure the central bank to slash interest rates. Trump administration officials have used concerns about the building overhaul to cast doubt on Fed Chairman Jerome Powell's decision-making. They were scheduled to inspect the site on Thursday, and the White House announced late Wednesday that the president would also be visiting. The visit reflects Trump's disregard for the traditional independence of the Fed, which plays a foundational role in the American economy by setting monetary policy that is supposed to be free of political influence. While previous presidents have criticised the Fed's decisions, Trump's sustained campaign is an unusual and, his critics say, dangerous departure from the norm. He has called on Powell to resign, insulted him repeatedly and suggested he could be fired. More recently, Trump has said he has no plans to oust Powell, which could be illegal. Pushing Powell out also would send shockwaves through global markets, potentially having the opposite effect that Trump wants as he pushes for lower borrowing costs. Trump, a Republican, appointed Powell during his first term, and President Joe Biden, a Democrat, extended his tenure. Powell's term doesn't end until next May, and he's previously insisted that he will serve until then. Not everyone in Trump's administration agrees with the president's contention that Powell needs to resign. "There's nothing that tells me that he should step down right now," said Treasury Secretary Scott Bessent, whom Trump has floated as a potential replacement for Powell, in a recent interview with Fox Business. "He's been a good public servant." Trump has criticised Powell for months because the chair has kept the short-term interest rate the Fed controls at 4.3 per cent this year, after cutting it three times last year. Powell says the Fed wants to see how the economy responds to Trump's sweeping tariffs on imports, which Powell says could push up inflation. Powell's caution has infuriated Trump, who has demanded the Fed cut borrowing costs to spur the economy and reduce the interest rates the federal government pays on its debt. Trump will likely be disappointed again soon. A key Fed committee is expected to keep rates where they are when it meets next week. The Fed has been renovating its Washington headquarters and a neighbouring building. With some of the construction occurring underground and as building materials have soared in price after inflation spiked in 2021 and 2022, the estimated cost has ballooned from $US1.9 billion ($A2.9 billion) to about $US2.5 billion ($A3.8 billion). When asked last week if the costly rebuilding could be grounds to fire Powell, Trump said: "I think it sort of is". "When you spend $US2.5 billion ($A3.8 billion) on, really, a renovation. I think it's really disgraceful," Trump said. President Donald Trump plans to step foot in the Federal Reserve as his allies scrutinise its expensive building renovations, a highly personal and confrontational escalation of his campaign to pressure the central bank to slash interest rates. Trump administration officials have used concerns about the building overhaul to cast doubt on Fed Chairman Jerome Powell's decision-making. They were scheduled to inspect the site on Thursday, and the White House announced late Wednesday that the president would also be visiting. The visit reflects Trump's disregard for the traditional independence of the Fed, which plays a foundational role in the American economy by setting monetary policy that is supposed to be free of political influence. While previous presidents have criticised the Fed's decisions, Trump's sustained campaign is an unusual and, his critics say, dangerous departure from the norm. He has called on Powell to resign, insulted him repeatedly and suggested he could be fired. More recently, Trump has said he has no plans to oust Powell, which could be illegal. Pushing Powell out also would send shockwaves through global markets, potentially having the opposite effect that Trump wants as he pushes for lower borrowing costs. Trump, a Republican, appointed Powell during his first term, and President Joe Biden, a Democrat, extended his tenure. Powell's term doesn't end until next May, and he's previously insisted that he will serve until then. Not everyone in Trump's administration agrees with the president's contention that Powell needs to resign. "There's nothing that tells me that he should step down right now," said Treasury Secretary Scott Bessent, whom Trump has floated as a potential replacement for Powell, in a recent interview with Fox Business. "He's been a good public servant." Trump has criticised Powell for months because the chair has kept the short-term interest rate the Fed controls at 4.3 per cent this year, after cutting it three times last year. Powell says the Fed wants to see how the economy responds to Trump's sweeping tariffs on imports, which Powell says could push up inflation. Powell's caution has infuriated Trump, who has demanded the Fed cut borrowing costs to spur the economy and reduce the interest rates the federal government pays on its debt. Trump will likely be disappointed again soon. A key Fed committee is expected to keep rates where they are when it meets next week. The Fed has been renovating its Washington headquarters and a neighbouring building. With some of the construction occurring underground and as building materials have soared in price after inflation spiked in 2021 and 2022, the estimated cost has ballooned from $US1.9 billion ($A2.9 billion) to about $US2.5 billion ($A3.8 billion). When asked last week if the costly rebuilding could be grounds to fire Powell, Trump said: "I think it sort of is". "When you spend $US2.5 billion ($A3.8 billion) on, really, a renovation. I think it's really disgraceful," Trump said.
Perth Now
5 days ago
- Business
- Perth Now
Trump to check out Federal Reserve's pricey renovations
President Donald Trump plans to step foot in the Federal Reserve as his allies scrutinise its expensive building renovations, a highly personal and confrontational escalation of his campaign to pressure the central bank to slash interest rates. Trump administration officials have used concerns about the building overhaul to cast doubt on Fed Chairman Jerome Powell's decision-making. They were scheduled to inspect the site on Thursday, and the White House announced late Wednesday that the president would also be visiting. The visit reflects Trump's disregard for the traditional independence of the Fed, which plays a foundational role in the American economy by setting monetary policy that is supposed to be free of political influence. While previous presidents have criticised the Fed's decisions, Trump's sustained campaign is an unusual and, his critics say, dangerous departure from the norm. He has called on Powell to resign, insulted him repeatedly and suggested he could be fired. More recently, Trump has said he has no plans to oust Powell, which could be illegal. Pushing Powell out also would send shockwaves through global markets, potentially having the opposite effect that Trump wants as he pushes for lower borrowing costs. Trump, a Republican, appointed Powell during his first term, and President Joe Biden, a Democrat, extended his tenure. Powell's term doesn't end until next May, and he's previously insisted that he will serve until then. Not everyone in Trump's administration agrees with the president's contention that Powell needs to resign. "There's nothing that tells me that he should step down right now," said Treasury Secretary Scott Bessent, whom Trump has floated as a potential replacement for Powell, in a recent interview with Fox Business. "He's been a good public servant." Trump has criticised Powell for months because the chair has kept the short-term interest rate the Fed controls at 4.3 per cent this year, after cutting it three times last year. Powell says the Fed wants to see how the economy responds to Trump's sweeping tariffs on imports, which Powell says could push up inflation. Powell's caution has infuriated Trump, who has demanded the Fed cut borrowing costs to spur the economy and reduce the interest rates the federal government pays on its debt. Trump will likely be disappointed again soon. A key Fed committee is expected to keep rates where they are when it meets next week. The Fed has been renovating its Washington headquarters and a neighbouring building. With some of the construction occurring underground and as building materials have soared in price after inflation spiked in 2021 and 2022, the estimated cost has ballooned from $US1.9 billion ($A2.9 billion) to about $US2.5 billion ($A3.8 billion). When asked last week if the costly rebuilding could be grounds to fire Powell, Trump said: "I think it sort of is". "When you spend $US2.5 billion ($A3.8 billion) on, really, a renovation. I think it's really disgraceful," Trump said.
West Australian
5 days ago
- Business
- West Australian
Trump to check out Federal Reserve's pricey renovations
President Donald Trump plans to step foot in the Federal Reserve as his allies scrutinise its expensive building renovations, a highly personal and confrontational escalation of his campaign to pressure the central bank to slash interest rates. Trump administration officials have used concerns about the building overhaul to cast doubt on Fed Chairman Jerome Powell's decision-making. They were scheduled to inspect the site on Thursday, and the White House announced late Wednesday that the president would also be visiting. The visit reflects Trump's disregard for the traditional independence of the Fed, which plays a foundational role in the American economy by setting monetary policy that is supposed to be free of political influence. While previous presidents have criticised the Fed's decisions, Trump's sustained campaign is an unusual and, his critics say, dangerous departure from the norm. He has called on Powell to resign, insulted him repeatedly and suggested he could be fired. More recently, Trump has said he has no plans to oust Powell, which could be illegal. Pushing Powell out also would send shockwaves through global markets, potentially having the opposite effect that Trump wants as he pushes for lower borrowing costs. Trump, a Republican, appointed Powell during his first term, and President Joe Biden, a Democrat, extended his tenure. Powell's term doesn't end until next May, and he's previously insisted that he will serve until then. Not everyone in Trump's administration agrees with the president's contention that Powell needs to resign. "There's nothing that tells me that he should step down right now," said Treasury Secretary Scott Bessent, whom Trump has floated as a potential replacement for Powell, in a recent interview with Fox Business. "He's been a good public servant." Trump has criticised Powell for months because the chair has kept the short-term interest rate the Fed controls at 4.3 per cent this year, after cutting it three times last year. Powell says the Fed wants to see how the economy responds to Trump's sweeping tariffs on imports, which Powell says could push up inflation. Powell's caution has infuriated Trump, who has demanded the Fed cut borrowing costs to spur the economy and reduce the interest rates the federal government pays on its debt. Trump will likely be disappointed again soon. A key Fed committee is expected to keep rates where they are when it meets next week. The Fed has been renovating its Washington headquarters and a neighbouring building. With some of the construction occurring underground and as building materials have soared in price after inflation spiked in 2021 and 2022, the estimated cost has ballooned from $US1.9 billion ($A2.9 billion) to about $US2.5 billion ($A3.8 billion). When asked last week if the costly rebuilding could be grounds to fire Powell, Trump said: "I think it sort of is". "When you spend $US2.5 billion ($A3.8 billion) on, really, a renovation. I think it's really disgraceful," Trump said.
