U.S. President Donald Trump drew the line on the speculation about the dismissal of Jerome Powell, Chair of the Federal Reserve (Fed), saying, 'The possibility is very low.' However, he left the case open in the event that 'fraud' is revealed concerning the renovation of the Fed building.
After meeting with the Prime Minister of Bahrain in the Oval Office on the 16th (local time), President Trump told reporters regarding the possibility of dismissing Director Powell, 'I don't rule anything out,' but added, 'If he does not need to resign due to fraud regarding the renovation of the Fed building, I think the possibility is very low.'
In response to repeated questions about whether there are dismissal plans, he emphasized, 'No. We have no plans whatsoever.'
Recently, the White House and some Republican lawmakers have raised concerns over the expenses related to the renovation of the headquarters building initiated during Powell's tenure. It is reported that the renovation, which includes a rooftop garden, artificial waterfall, VIP-only elevator, and marble decorations, has increased by $700 million, resulting in a total expense of $2.5 billion (approximately 3.5 trillion won) beyond initial estimates.
With regard to this, President Trump claimed, 'If $2.7 billion was spent, there could have been fraud involved,' adding, 'He proceeded with this kind of construction without proper approval.'
President Trump also criticized Chair Powell, calling him 'a terrible Fed chair,' and pressured, 'What he should do is lower the interest rates.' Powell's term runs until May next year.
Trump's remarks seem to aim to quell the recent speculation about dismissal while also trying to induce a decision to lower the benchmark interest rate in the upcoming Federal Open Market Committee (FOMC) meeting scheduled for the end of this month.
Democratic Senator Elizabeth Warren (Massachusetts) criticized that 'Suddenly, President Trump and the Republicans' interest in the renovation of the Fed building is to create an excuse for dismissal.'
President Trump also mentioned candidates for the next Fed chair. He stated, 'Many people want the Fed chair position,' identifying Kevin Hassett, Chair of the Council of Economic Advisers, as 'one of the individuals under consideration.'