Trump visits Federal Reserve after attacks on Powell
The president is expected to arrive at the central bank at 4pm Washington time (9pm UK) to inspect renovation works.
The overhaul has become increasingly contentious in recent weeks, amid speculation Mr Trump is seeking to use cost overruns on the project as an excuse to oust Mr Powell.
Mr Trump has been campaigning for months to get the Fed to cut interest rates, posting a regular stream of invective against Mr Powell on his Truth Social online platform.
This week he called for Fed's benchmark rate to be 3 percentage points lower than the 4.25pc to 4.5pc rate it is now.
The Fed's reluctance to move until it gauges the inflationary effect of Mr Trump's tariffs has prompted the president to repeatedly threaten to sack Mr Powell before his term as Fed chairman ends next May.
American law prevents the president from ejecting the Fed boss for reasons related to monetary policy. The only potentially legal cause for removal would be 'inefficiency, neglect of duty, or malfeasance'.
Mr Trump is also wary of provoking a market meltdown if he is seen to attack the bank's independence on monetary policy.
This has prompted the White House to look for other potential triggers – and they have alighted on the controversial renovation project at the Fed's Washington headquarters.
The cost of the works was budgeted at $1.9bn (£1.4bn) when the project began in 2021, but has blown out to $2.5bn.
The Fed has said that higher post-pandemic costs for labour and materials were responsible, along with unexpected expenses related to asbestos removal and toxic soil contamination.
But Mr Trump's senior aides have claimed the project is extravagant and wasteful. They alleged the plans included VIP dining rooms, executive elevators, water features and roof gardens – claims largely rejected by the Fed.
Several senior officials have sought to keep up the pressure by arranging to tour the building site and inspect the works personally. Mr Trump has now opted to join them.
The president has suggested he is unlikely to try and oust the chairman 'unless he has to leave for fraud'. Several of Mr Trump's aides, including those leading the campaign against the Fed, are in the frame to replace Mr Powell.
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