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Trump Confronts Fed Over Rates, Spurs Audit Plan

He accused Chair Jerome Powell of delaying rate cuts during an unprecedented visit to the Fed’s Washington headquarters.

Overview

  • On July 24, President Trump made an unprecedented visit to the Federal Reserve’s Washington headquarters to press for interest-rate cuts.
  • During the visit, he publicly denounced Chair Jerome Powell as a “nigaud” and alleged possible fraud in the Fed’s renovation projects.
  • Treasury Secretary Scott Bessent announced a comprehensive audit of the Federal Reserve to strengthen executive oversight of the central bank.
  • The Fed has held its key interest rate at 4.25%–4.50% since December, citing ongoing economic and global trade uncertainties.
  • Jerome Powell’s term runs through May 2026 and any removal would require proof of grave fault, preserving the Fed’s legal independence.