"Powell is an idiot, a fool, a truly bad Fed Chair"...Trump's 'carpet bombing'

'Interest Rate Conflict' Trump-Powell

Trump: "The US base rate should be lower than 1%"

Controversy over excessive Fed building renovation costs

Chairman Powell directly requested an audit

Regarding the US base interest rate cut, President Donald Trump once again criticized Jerome Powell, the Chairman of the US central bank (Fed). President Trump referred to Powell as an 'idiot' and argued that the base rate should be below 1%. Powell took a direct stand by voluntarily requesting an audit regarding the excessive spending allegations raised by the Trump administration over the Fed headquarters renovation.

On the 14th (local time), during a luncheon speech at the White House Office of Faith-Based and Neighborhood Partnerships, Trump said, "We have a really bad Fed Chair. If he had lowered rates, I would have been kind to him, but it's no use," adding, "He really seems like an 'idiot' and a foolish person," thus criticizing Powell.

Trump has accumulated dissatisfaction with Chairman Powell, who has kept rates unchanged despite his repeated demands for a rate cut. Since Trump took office, the Fed has held a total of four Federal Open Market Committee (FOMC) meetings, but each time left the base rate unchanged at 4.25%~4.50%. Accordingly, Trump labeled Powell 'Mr. Too Late,' as well as throwing out harsh terms such as fool, idiot, and loser.

Once again, Trump pointed out that the high base rate has increased the federal government's interest burden on national debt. He explained that a base rate of 1% would cost $36 billion, while 2% would cost $60–70 billion. He diagnosed, "The economy is booming, business confidence has surged, income has increased, prices have fallen, and inflation has disappeared." He emphasized again that "the base rate should be below 1%."

Chairman Powell decided to confront the controversy over the Fed headquarters renovation costs head-on. According to US political media outlet Politico, Powell last weekend requested Michael Horowitz, the Inspector General of the Federal Reserve, to conduct an audit regarding the renovation costs of the Fed headquarters in Washington, D.C.

Recently, the Trump administration claimed that the renovation cost for the Fed headquarters reached $2.5 billion, an increase of $700 million over the initial plan, due to design changes such as a rooftop garden, artificial waterfall, and marble decorations. Russell Vought, Director of the White House Office of Management and Budget (OMB), sent a letter to Chairman Powell on the 10th, sarcastically asking whether he was building 'Versailles' by wasting taxpayers’ money on the building’s interior.

However, many analysts view this as an attempt to find grounds for replacing Chairman Powell before his term ends in May next year. Implementing a monetary policy contrary to the president's orders is not considered a lawful reason for dismissal. Axios analyzed, "On the surface, it looks like an issue with the rooftop garden, but in reality, it's a struggle over control of the Fed," and, "They are trying to build a case for dismissing Chairman Powell for a legitimate reason before his term expires next spring."

Reporter Han Kyungjae