Trump Plays Pressure: Fed in the Spotlight, Powell Cornered
President Donald Trump again put pressure on Federal Reserve Chairman Jerome Powell by visiting the Fed headquarters renovation project in Washington last Thursday. During the televised visit, Trump used the opportunity to push for interest rate cuts, while highlighting the cost of the building renovations as an additional form of criticism of Powell.
Trump not only attacked interest rate policy but also launched a "flood zone" strategy—a tactic of attacking from multiple angles to make it difficult for opponents to retaliate. He appointed political appointees to the project's planning commission, interviewed potential replacements for Powell, and raised the issue of renovation costs as a political weapon. This strategy put Powell on the defensive amid mounting pressure.
Although Trump has publicly stated that he will not fire Powell, pressure from within the White House remains intense. Some officials, such as Budget Director Russell Vought, have even suggested firing Powell before his term ends in 2026. However, White House lawyers have warned that such a move is risky, as it legally requires compelling reasons.
Meanwhile, Trump has begun considering replacement candidates, with Kevin Hassett emerging as the frontrunner. Behind all this, Trump's ultimate goal remains the same: to force the Fed to lower interest rates to align the economy with his political strategy ahead of the election. However, to date, the Democratic Party has not yet developed a strong countermeasure against Trump's aggressive stance against the central bank.(ayu)
Source: newsmaker.id
