Washington (dpa-AFX)-US President Donald Trump has noticeably irritated US Federal Reserve (Fed) with allegedly new figures on the rising costs of the Renovation work. “I haven’t heard that from anyone,” said the Powell to Trump when he confronted him with increased spending of 3.1 billion US dollars when he visited the central bank. Powell visibly shook his head. When a letter from Trump handed over to him, the Fed boss stated: “This is a building that was already built. It was completed five years ago.”
There has been a feud between Trump and Powell for a long time. Again and again the President demanded key interest rates, while Powell in the face of existing inflation risks Monetary policy sets and hesitates with interest reductions. Because the central bank boss does not want to join, Trump has already threatened to dismiss it several times. The hurdles for this are high: This requires an “important reason”. The question of whether a US president can relieve a central bank boss is not legal.
Suddenly gentler tones from Trump
During the tour on Thursday, Trump then taught other tones in the presence of Powell: “I think he’ll do the right thing,” said Trump. The discharge of the central bank boss is a “big thing”. At the same time, Trump confirmed his demand for a reduction in the key interest rate.
It was initially unclear why Trump suddenly spoke of renovation costs of $ 3.1 billion in the amount of $ 3.1 billion and probably included expenses for a project that has already been completed. Trump had recently spoken of $ 2.5 billion. It is clear, on the other hand, that the renovation of the central bank is more expensive than originally thought – Trump had recently used this to give his demands on withdrawal more weight ./ngu/dp/he