Core Viewpoint - The ongoing dispute regarding the renovation of the Federal Reserve building is amplifying internal divisions within the Trump administration and challenging the independence of the Federal Reserve [1][3]. Group 1: Federal Reserve Independence - Treasury Secretary Mnuchin and other senior officials assert the need to respect the Federal Reserve's policy autonomy, while some advisors are pushing for the legal possibility of removing Chairman Powell from office [1][3]. - The Federal Reserve's independence is crucial for maintaining market expectations and investor confidence in dollar assets, especially amid rising fiscal deficits in the U.S. [3][4]. Group 2: Political Pressure and Monetary Policy - Since taking office, Trump has repeatedly pressured the Federal Reserve to lower interest rates to alleviate fiscal burdens, aiming to reduce government borrowing costs to support his tax cut plans [3][4]. - Some advisors in Trump's camp view the current decline in inflation and cooling labor market as an opportunity to push for interest rate cuts, indicating a systematic plan rather than a spontaneous political move [3][4]. Group 3: Economic Implications - Powell indicated that potential interest rate cuts later this year would depend on data rather than political motivations, highlighting the risks of using monetary policy to address fiscal policy gaps [4]. - The tension between monetary policy independence and fiscal policy expansion is expected to intensify as the election season approaches, with Trump likely to leverage interest rate policies as a campaign tool [4][5].