Wed Jul 16 01:30:00 UTC 2025: ## Summary:
President Trump has escalated his attacks on Federal Reserve Chair Jerome Powell, suggesting the $2.5 billion renovation plan at the Federal Reserve headquarters is a “fireable offense.” Trump has criticized Powell for months, demanding lower interest rates, and the Fed’s independence is a source of market concern. JPMorgan Chase CEO Jamie Dimon has defended the Fed’s independence, warning against political interference. The Fed’s renovation project, initially approved in 2017, has faced cost overruns due to unforeseen conditions like asbestos and soil contamination. Powell has requested a review of the project and stated the Fed would have lowered rates if not for tariffs. Trump, however, believes rates should be much lower.
## News Article:
**Trump Suggests Fed Chair Powell’s Job at Risk Over $2.5 Billion Renovation**
WASHINGTON – President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, now suggesting that the central banker’s job could be on the line over a $2.5 billion renovation project at the Federal Reserve headquarters.
“I think he’s terrible… But the one thing I didn’t see him as a guy that needed a palace to live in,” Trump told reporters, adding that the project was a “fireable offense.”
This marks an escalation in Trump’s ongoing battle with Powell, whom he has repeatedly pressured to lower interest rates. The President claims talking to Powell is like “talking to a chair” and said, “We should be at 1%. We should be less than 1%.”
The Fed’s decision to hold rates steady has fueled Trump’s ire and raised concerns about the central bank’s independence. Market analysts have warned that political interference with the Fed could have adverse consequences.
JPMorgan Chase CEO Jamie Dimon echoed these concerns, stating, “The independence of the Fed is absolutely critical, and not just for the current Fed chairman, who I respect, but for the next Fed chairman.”
The renovation project, approved in 2017, has faced cost increases from $1.9 billion to $2.5 billion due to unforeseen conditions like asbestos, soil contamination, and a high water table. Powell has requested an additional review of the project by the central bank’s inspector general.
Powell has maintained that Fed decisions are based on economic data and that the impact of tariffs is being considered before lowering rates. He has previously stated that the Fed would have lowered rates if it weren’t for the imposed tariffs.
The White House has not issued an official statement regarding the President’s remarks, but the ongoing tensions raise questions about the future of the Fed’s leadership and its ability to operate independently.
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