Core Viewpoint - The ongoing conflict between President Trump and Federal Reserve Chairman Powell centers around the rising costs of the Federal Reserve's headquarters renovation, which has escalated from an initial budget of $1.9 billion to $2.5 billion, highlighting a broader power struggle over U.S. economic policy and monetary independence [1][3]. Group 1: Renovation Costs and Economic Policy - Trump has criticized the Federal Reserve's renovation costs, claiming they are excessive, while he himself has increased the budget for a new White House banquet hall from $200 million to $400 million [1][3]. - The Federal Reserve attributes the cost overruns to unforeseen circumstances such as asbestos contamination and higher-than-expected groundwater levels [3]. - Trump believes that high interest rates set by the Federal Reserve hinder economic growth and increase corporate financing costs, while Powell maintains that high rates are necessary to address inflation and employment [3][5]. Group 2: Legal and Institutional Challenges - Trump faces significant legal hurdles in attempting to dismiss Powell, as the Federal Reserve Act protects the chairman from being removed without just cause, which includes gross negligence [5]. - The Supreme Court has historically upheld the independence of the Federal Reserve, making it difficult for the president to remove the chairman based solely on policy disagreements [5]. - Trump's previous attempts to challenge the independence of the Federal Reserve include the dismissal of a board member, which was later overturned by a federal appeals court [5]. Group 3: Potential Candidates for Federal Reserve Leadership - The list of potential candidates to succeed Powell includes Kevin Hassett, who supports interest rate cuts, and Kevin Warsh, who is seen as more hawkish regarding inflation control [6]. - Other candidates mentioned are current Federal Reserve board members and executives from major financial institutions [6]. Group 4: Historical Context and Implications - Historical precedents show that presidential pressure on the Federal Reserve can lead to negative economic outcomes, such as the inflation crisis of the 1970s [9]. - Current economic conditions, including rising tariffs and their impact on prices, complicate the situation, with predictions of short-term price increases due to Trump's trade policies [9]. - The independence of the Federal Reserve is crucial for maintaining trust in the U.S. dollar, and any successful intervention in monetary policy could lead to a loss of confidence among investors and accelerate de-dollarization globally [9].

Core Viewpoint - The article discusses former President Trump's dissatisfaction with Federal Reserve Chairman Jerome Powell, highlighting Trump's desire to potentially replace Powell and the implications of such a move on monetary policy and the independence of the Federal Reserve [1][3][11]. Group 1: Trump's Criticism of Powell - Trump has expressed that he would never reappoint Powell, criticizing him for slow interest rate hikes during the post-pandemic inflation period [3][4]. - Trump's main grievances stem from Powell's monetary policy decisions, which he believes have negatively impacted the economy and stock market [4][5]. Group 2: Political and Economic Implications - Trump's potential appointment as Fed Chair could allow him to implement aggressive monetary policies, such as zero interest rates and unlimited quantitative easing, to create a facade of economic prosperity [7][8]. - This move could undermine the independence of the Federal Reserve, setting a precedent for future political interference in monetary policy [8][11]. Group 3: Personal Financial Interests - Trump's business empire, burdened with $2.3 billion in debt, would benefit from lower interest rates and a favorable monetary policy environment, directly impacting his financial interests [8][9]. - The potential for increased consumer spending due to a loose monetary policy would also positively affect Trump's businesses, including hotels and golf courses [9][11].