President Trump made Jerome Powell squirm during a visit to the Federal Reserve last week. The two men donned construction helmets and bickered over cost overruns at the central bank. As Trump highlighted an expensive renovation project, the Fed chair looked uncomfortable and out of place.
It was part of Trump’s pressure campaign against Powell, who has resisted calls to lower interest rates. Despite the tension, Trump says he won’t fire Powell, whose term lapses next spring. “To do that is a big move, and I just don’t think it’s necessary,” the president told reporters. “And I believe that he’s going to do the right thing.”
We’ll see. In the meantime, the Fed stands out as an exception in Trump’s Washington. It’s the rare institution that the president hasn’t bent to his will—yet. Trump’s displeasure with Powell, whom he appointed as Fed chair in 2017, is well known, but he hasn’t removed the central banker due to fears of chaos in financial markets. So Trump has opted to make Powell’s life miserable instead. It’s the price of independence.
Others haven’t been so fortunate.
