Defiant Fed chief to send clear signal he calls the shots on US monetary policy

[WASHINGTON] US President Donald Trump has gone to extraordinary lengths to pressure US Federal Reserve chairman Jerome Powell to cut interest rates, but Trump’s decision to feud with the central banker is having the opposite of its intended effect.

Anyone who watched the both of them during Trump’s tour of the Fed’s building renovation project on Thursday (Jul 24) could easily tell that the two are on a collision course.

Powell, however, remains unbowed. Rather than being defensive when Trump confronted him about the budget overrun of the renovation, Powell instead corrected Trump on his cost estimates. Trump is bound to keep berating Powell until his term ends in May 2026, and Powell is very unlikely to cut rates any time soon.