A rare occurrence in history! Using renovation disputes to "pressure" Powell, Trump will personally visit the Federal Reserve today

U.S. President Donald Trump will personally visit the Federal Reserve on Thursday, further escalating his pressure on Fed Chairman Jerome Powell and the monetary policy stance, while intensifying the controversy surrounding the $2.5 billion renovation project at the Fed's headquarters. According to the presidential schedule released by the White House on Wednesday evening, Trump will visit the Federal Reserve at 4 PM Eastern Time on Thursday, with the visit lasting about an hour. This rare presidential visit comes as Trump and his allies continue to urge the Fed to significantly cut interest rates. Trump stated on social media that U.S. interest rates should be lowered from the current 4.25%-4.5% to 1% to reduce the government's $1 trillion refinancing costs. This move has raised concerns in the market about the potential weakening of the central bank's independence. Previously, Trump hinted that he might consider firing Powell, although he later stated that he would not do so before the end of his term. However, Commerce Secretary Howard Lutnick bluntly stated in a media interview on Wednesday that Powell "must go" and should "either resign or be replaced." Headquarters Renovation Project Under Scrutiny Trump's criticism of the Federal Reserve mainly focuses on two aspects: its $2.5 billion headquarters renovation project and what he perceives as an overly conservative interest rate policy. "This guy is building a severely over-budget building; what does he need this building for?" Trump said to the media in the Oval Office on Tuesday. It is reported that White House Deputy Chief of Staff James Blair, Budget Director Russ Vought, and Federal Housing Finance Agency Director Bill Pulte (a public critic of Powell) have requested to tour the renovation project. Blair rejected the Fed's proposed tour time last week because it overlapped with a scheduled meeting with the president and Republican senators. Blair stated on social media X on Tuesday that after multiple requests from the executive branch for an "on-site inspection" of the renovation work, the Fed has "yielded." In response to the criticism, the Fed recently released a virtual tour video of the construction site, showcasing work such as removing asbestos-containing caulking and installing blast-resistant windows. The central bank also detailed certain facilities, such as the scaled-back employee rooftop terrace. Powell has stated that media reports about the renovation project are inaccurate and has formally requested the bank's inspector general to review the $2.5 billion repair work in recent weeks. According to a previous article by Jianwen, the Fed responded point by point to the White House's specific accusations on its official FAQ page, clearly denying the construction of luxury facilities such as a VIP restaurant, VIP elevator, and new water features, and detailing the main reasons for the cost increases. Monetary Policy Controversy Continues to Escalate Trump's visit to the Federal Reserve marks a further escalation of his pressure on the central bank. Reports indicate that Trump is demanding the Fed to significantly lower interest rates by 3 percentage points to reduce the government's borrowing costs For a long time, Trump has been dissatisfied with the interest rate policy of the Federal Reserve under Powell's leadership, believing that it has failed to continue the pace of interest rate cuts from the previous year, and is concerned about the inflation impact that the administration's tariff increases may bring. Trump's position often changes—sometimes calling for Powell to resign, sometimes considering whether to attempt to fire him, and at other times seemingly planning to wait until Powell's term ends in May next year. Officials in the administration have differing opinions on whether Powell should be fired. Treasury Secretary Scott Bessent told the media on Tuesday, "There is no indication that he should step down now," adding, "His term ends in May next year. If he wants to stick it out until then, I think he should. If he wants to leave early, I think he should do that too." Central Bank Independence Under Threat, Markets Tremble Trump's actions could shake the markets, as they may undermine the long-standing principles surrounding central bank independence and autonomy. It is uncommon for presidents to visit the Federal Reserve in an official capacity, reflecting the long-standing independent relationship between the central bank and the White House. From a legal perspective, this dispute could have significant implications if it leads Trump to decide to remove Powell from office. According to the law, the president does not have the power to dismiss Federal Reserve officials without just cause, a provision that was reinforced by the Supreme Court's ruling in May regarding Trump's authority to remove members of independent government agencies. Presidential visits to the Federal Reserve are rare but not unprecedented. According to Powell's predecessor Ben Bernanke, President George W. Bush visited the Federal Reserve headquarters during his swearing-in ceremony in 2006, marking only the third time a president has visited the building since Gerald Ford in 1975 and Franklin Roosevelt in 1937