STORY: Donald Trump has Federal Reserve Chair Jerome Powell in his sights again.
“I think he’s doing a terrible job.”
But the White House isn’t merely criticising Powell now – it appears to be actively seeking grounds to oust him.
At issue is a program to renovate the Fed’s buildings, which has seen costs jump to $2.5 billion.
Administration economic adviser Kevin Hassett says Trump could have cause to fire Powell, depending on the outcome of a probe into the renovation.
Last week, White House budget director Russ Vought slammed the Fed chief for what he called an “ostentatious overhaul”, which he compared to France’s Palace of Versailles.
He said it included rooftop gardens, water features and “premium marble”.
Powell has previously denied all such claims, and on Friday the Fed said cost increases came after more lead and asbestos were found than expected.
They said the building was also plagued with leaky pipes and roofs.
And predicted the refurbishment would ultimately deliver cost savings, by putting all Fed staff on one campus.
But Trump too zeroed in on the project in remarks Sunday:
“We should have the lowest interest rates on earth. And we don’t. He just refuses to do it, and yet he is spending 2.5 billion dollars rebuilding the Fed, the Federal Reserve building.”
Any move to oust Powell will be closely watched by markets, with many investors anxious it could undermine the central bank’s independence and credibility.
Earlier in the year, reports that Trump could try to fire the Fed chief sparked market turmoil, before being denied by the White House.
Powell’s term ends next year, with Hassett mentioned as among the contenders to replace him.