The White House started its political attacks against the chairman of the Federal Reserve Jerome Powell.
After years of Powell’s openly criticized criticism, in despite decades of precedent, President Donald Trump now escalates his attacks by Jawboning on the interest rates of the type of Washington DC machinations that have a frontal collision. The recent attacks against Powell depend on allegations that have been hit in the past few days The renovation work of the Marriner S. Eccles of the Federal Reserve.
The current construction costs are 2.5 billion US dollars, around 700 million US budget.
The criticism of the renovation plans seem to be the beginning of the persecution of the case that Powell should be removed from his role for reasons of the matter. The allegations of the Trump administrative officials are available in two forms: First, the Federal Respect of Renovation are over the budget and therefore an indication of bad management. The second complaint from the White House is certain revisions to the Original 2021 planWhat the FED says that it reduced the costs differed from the National Capital Planning Commission from pre -made renovation plans and possibly provided the government’s government rules.
The NCPC, the government agency, which is responsible for urban planning in Washington DC, and Russell Vought, director of the Office for Management and Household (omb), is crucial for this political tongue maneuver. On Thursday, Vought Powell sent a letter in which his concerns about the cost overruns of the renovation project were described. VOUGHT’s letter contained a number of questions that focused on some of the more striking elements of the project, including a private dining room and a garden on the roof.
With the kind permission of NCPC/Fortus
A day later, the Fed published a new one post On the frequently asked questions, part of his website. The increase in costs came from excess prices for work and material prices, repeated reviews of government agencies and unforeseen events such as the search for more asbestos than expected in the building.
On Monday, Powell instructed the Fed General Inspector, Michael Horowitz, to check the renovation project. Axios.
The renovation concerns take place at a time of increasing tensions between the White House and the Central Bank’s break. Since his return to the office, Trump has repeatedly shared his view of monetary policy despite decades of expectations that the Fed is free of political interference. The spokesman for the White House, Kush Desai, said Trump could push both lower prices and make sure that the tax money is not wasted with the renovation. When the Federal Reserve was reached for a comment, she directed Assets on his website.
In addition to the multibillion dollar costs and the budget crossing, part of the White House case depends on allegations that the Fed would not have followed according to the procedural rules in which the NCPC would have necessary approval to change its plans. In his letter to the Fed, Powell’s statements from the Senate, in which he said there were no “new VIP dining rooms” or “new water features” and “new marble” as part of the renovation of the ECCles building.
According to Vouugge, this certificate was problematic. If these characteristics had actually been included in the project when Powell said that they had not misled the congress. If the characteristics mentioned in the original renovation plans for the ECCles building are no longer included, Powell may have violated rules, according to which agencies clarify changes to architectural designs with the NCPC.
Much of the disagreements depends on the definition of the individual of the term “new”. For example, there is a private dining area on the fourth floor of the building that is available according to the plans. However, a “new” dining room is not built. The same applies to an elevator that leads guests to the private dining area. Parts of the original plan such as the water features and a design for a roof garden were restored or removed overall, according to the website of the Federal Reserve. However, these changes did not increase to the level of the “significant changes” of the plans that would justify a review of the NCPC. The FED also said that it does not consider itself as a “direction” of the NCPC for its own construction projects.
During his certificate of the Senate, Powell had questioned the characteristics of the conversions.
“Media reports are misleading and inaccurate in many ways,” said Powell. “All inflammatory things that the media have worn are either not in the current plan or simply inaccurate.”
Much of public criticism of the renovation is well -groomed and Kevin Hassett, director of the National Economic Council. In an interview on Friday, the project described the project a “monstrosity”. A day later, Hassett said that the president had the authority to dismiss Powell for reasons.
Both economic advisors of the Trump government agree to the president’s allegations that interest rates should be lower and that Powell is solely responsible for their current level. During one of its eight sessions, the interest rate level will be voted on by the 12-member Federal Market Committee for the federal market during the calendar year. Powell has always said that interest rates have not decreased because the United States has the luxury of waiting for the fact that it will happen in a time with high uncertainty in the economy.
Powell’s patience has never stimulated Trump in an end since the beginning of his second term. Irony is a large part of the uncertainty that exceeds Trump’s signatures. Powell said the interest rates were likely be lower Wasn’t it for tariffs? On Friday, Trump said reporters that he would not fire Powell and the interest rates should “be three points lower”.
With the blueprints that were now caught in the crossfire of DC policy, Powell told the senators, realizing that the Eccles building had to renovate before becoming chairman.
“Nobody in office would like to carry out a large renovation of a historical building during their tenure,” said Powell. “It prefers to leave that to your successor. This is a great example of this.”
