"Federal Reserve's Mouthpiece": It is expected that the Federal Reserve will not cut interest rates this month

ChainCatcher news, according to Jin Shi reports, the renovation dispute has emboldened a faction within the Trump administration that has long sought to challenge the independence of the Federal Reserve. Some economic advisors, including Treasury Secretary Mnuchin, generally advocate for maintaining the Fed's independence. For example, Mnuchin recently declined to criticize Trump regarding the renovation in an interview with Fox Business. However, other advisors and external allies have been exploring legal avenues to remove Powell from office since before the election.

In his testimony last month, Powell said, "During my term, no one wants to undertake a major renovation of a historic building, let alone two historic buildings that require extensive repairs." Previously, Trump had pushed for lower interest rates on a broader scale to reduce government borrowing costs. The Fed is not expected to cut rates at its meeting later this month, but Powell has hinted that a rate cut could occur later this year if inflation performs well or the labor market weakens. Trump hopes to reduce the debt servicing costs of the federal deficit, while his tax cuts may expand the federal deficit. However, central banks in developed economies tend to resist such pressures, except in extreme situations like war. They believe that stable inflation is crucial for maintaining confidence in their national currencies.