White House Scrutinizes Powell’s Leadership Amid Fed Renovation Controversy

The TRUMP administration is intensifying its criticism of Federal Reserve Chair Jerome Powell, framing his resistance to interest rate cuts as an economic threat. June's inflation data showed minimal movement, with both headline and core figures rising just 0.1% monthly and hovering slightly above the Fed's 2% target annually. White House officials dismiss these metrics as justification for maintaining current rates, particularly given tariffs' muted inflationary impact.

Behind closed doors, discussions about Powell's removal are gaining momentum. National Economic Council Director Kevin Hassett clarified that while President Trump isn't seeking Powell's ouster, legal avenues for dismissal are under review. The Fed's $2.5 billion headquarters renovation—now $700 million over budget—has emerged as a focal point for critics, with Hassett labeling it symptomatic of poor leadership.