Donald Trump escalated his attacks against Federal Reserve Chair Jerome Powell, claiming the central bank's $2.5 billion headquarters renovation might constitute grounds for dismissal. "He's terrible... I never thought he'd spend $2.5 billion to expand the Fed," Trump told reporters, comparing conversations with Powell to "talking to a chair" due to his perceived lack of personality.

When questioned whether the renovation expenses represented a fireable offense, Trump asserted, "I think it does." This marks the latest escalation in the President's months-long campaign pressuring Powell for rate cuts, despite the Fed maintaining steady rates throughout 2019. Such political pressure has sparked concerns about erosion of the data-driven central bank's independence.

Wall Street heavyweight Jamie Dimon, Morgan Chase CEO, emphasized during a Tuesday call: "The Fed's independence matters tremendously—not just for the current chair I respect, but for future chairs." Dimon warned that manipulating the Fed "tends to backfire badly, achieving the exact opposite of your intended outcome."

Trump acknowledged his personal attacks haven't yielded desired rate cuts. The renovation project—now under additional scrutiny by the Fed's inspector general—has become his newest target. Senators previously grilled Powell during semi-annual monetary policy hearings about the "lavish overhaul" of the Washington headquarters.

Approved by the Fed Board in 2017 with an initial $1.9 billion budget, project costs ballooned to $2.5 billion due to unforeseen complications including higher-than-expected asbestos levels, toxic soil contamination, and elevated groundwater. Trump has consistently derided Powell as "dumb" and "an idiot," while the Fed Chair has indicated rate cuts would have occurred without tariff uncertainties.

Disputing the Fed's stance, Trump declared: "Our rates should be at 1%—even below that."