Former US President Donald Trump has launched a fresh and vehement attack on the chair of the Federal Reserve, Jerome Powell, threatening to fire him and even pursue legal action.
Trump's Latest Tirade Against the Fed Chair
During a press conference with Israeli Prime Minister Benjamin Netanyahu on Monday, Trump labelled Powell an "absolute fool" and repeated his desire to dismiss the central banker. He also bizarrely suggested he might file a lawsuit against Powell for "gross incompetence", a claim he centred on the cost of renovating the Federal Reserve's headquarters.
Trump boasted about the state of the US economy, but claimed it was thriving "despite the fact that we have a fool at the Federal Reserve." He criticised President Joe Biden for reappointing Powell, conspicuously omitting the fact that he, Trump, was the one who first appointed Powell to the role in 2018.
False Claims and Contradictions on Building Costs
The core of Trump's attack revolved around the Fed's building project. Turning to Netanyahu, he repeated a false claim he has made for months, stating, "Bibi, he's up to $4.1bn to do a renovation of a few small buildings." This figure is a significant inflation of the actual cost; as Powell pointed out to Trump on camera earlier this year, the renovation budget is $2.5bn.
Trump contrasted this with the cost of a new ballroom he is constructing at the White House, claiming his project would be a "tiny fraction of that number" and was "under budget and ahead of schedule." He immediately contradicted himself, however, by acknowledging the ballroom's latest estimated cost had doubled from $200m to $400m. He blamed the increase on security requirements for hosting an inauguration.
Political Repercussions and Future Leadership
The public berating of the ostensibly independent Fed chair has significant political and economic implications. Trump's comments underscore his continued willingness to challenge central bank independence, a cornerstone of modern economic policy.
With the potential to return to the White House, Trump confirmed he would be appointing Powell's successor next year. When pressed on his potential pick, he stated he plans to announce his choice sometime in January.
This episode highlights the ongoing political pressure on US monetary institutions and sets the stage for a potentially contentious transition in Federal Reserve leadership should Trump win the upcoming election.
