Trump will visit Fed today

President Donald Trump is set to visit the Federal Reserve headquarters in Washington on Thursday, days after suggesting Chair Jerome Powell's handling of a costly building renovation could be grounds for dismissal.

The visit comes amid heightened tensions between the White House and the central bank. Trump has repeatedly criticized Powell for keeping the Fed's key short-term interest rate at 4.3% this year, arguing that lower borrowing costs are needed to spur economic growth and reduce federal debt interest payments.

Powell has defended holding rates steady after three cuts last year, saying the Fed needs to see how the economy responds to Trump's sweeping tariffs on imports, which he warned could raise inflation.

The flashpoint now includes a $2.5 billion renovation of the Fed's headquarters and a neighboring building. Initially estimated at $1.9 billion, costs have surged due to underground construction and rising material prices following the inflation spike of 2021 and 2022.

Trump called the expense "disgraceful" last week and said it "could be" grounds for firing Powell, despite the legal and economic implications of dismissing a Fed chair. Such a move would challenge the central bank's long-held independence, a principle supported by most economists and Wall Street investors.

Source: AP