Commerce Secretary Howard Lutnick, speaking on ‘The Ingraham Angle,’ disclosed that President Donald Trump is actively pressing Federal Reserve Chair Jerome Powell to ease monetary policy by lowering interest rates. Lutnick revealed this during an interview where he and host Ben Ingraham discussed the contentious debate over the Federal Reserve’s housing policies and the so-called ‘Fed Mahal,’ a moniker for the Federal Reserve’s headquarters. The remarks came amid growing scrutiny of the Fed’s role in the housing market and its influence on broader economic conditions.
Talks between Trump and Powell have reportedly focused on how adjusting interest rates could mitigate the costs of renovating the ‘Fed Mahal,’ a project that has drawn public criticism for its expense and perceived lack of transparency. Lutnick emphasized the need for the Fed to maintain its independence, warning that political interference could undermine its ability to serve the public interest. The discussion underscored the tension between executive and central bank authorities, with Lut, now a top administration official, navigating the delicate balance between policy and political pressure.
This debate has reignited discussions about the Fed’s role in shaping economic outcomes and the potential consequences of its decisions on inflation, employment, and housing affordability. As Trump continues to advocate for lower interest rates to stimulate business investment and consumer spending, the Fed faces increasing scrutiny over its policy stance and its ability to operate without political influence. The situation highlights the complexities of U.S. economic governance and the challenges of maintaining central bank independence in a politically charged environment.