The Federal Reserve Chair and the US President got into a disagreement over costs at a tour of the Fed’s office building renovation in Washington on Thursday.
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The US Federal Reserve building's renovation has received a lot of public attention, especially since the US President suggested last week that the escalating construction costs could be grounds to fire Fed Chair Jerome Powell.
Donald Trump has repeatedly expressed his frustration over the Fed’s reluctance to cut interest rates, which would boost the economy through cheaper loans poured into investments and spending.
However, the Federal Reserve has been reluctant to do so, with the Chair Jerome Powell citing the looming inflation threat due to the US tariffs.
As the Fed is intended to be an independent agency, the Supreme Court has signalled that the president can't fire Powell just because he won't cut rates as fast as Trump wants.
Trump also recently said he considered firing the Fed Chair, but said he is 'highly unlikely' to do so. However, he also suggested that the escalating construction could serve as a reason to fire Powell.
On Thursday, Trump scorned Powell over costs as they toured the Federal Reserve building's renovation. But as the president pulled out a paper to show an increased amount, the Fed Chair had to correct him. The scene ended with the president joking that he would back off Powell if he lowered interest rates, according to Associated Press.
Watch the video above to see how Powell reacted to President Trump's words about the cost of the renovation.
