Donald Trump Seeks Grounds to Fire Fed Chair Jerome Powell Amid Renovation Controversy

Trump's Criticism of Fed Chair Powell

• 🎯 Donald Trump is once again criticizing Federal Reserve Chair Jerome Powell, stating he is doing a "terrible job" and failing to lower interest rates.
• 💡 Trump believes the US should have the "lowest interest rate on earth" and expresses frustration that Powell "just refuses to do it."

White House Probe into Fed Building Renovation

• 🔍 The White House appears to be actively seeking grounds to oust Powell, focusing on a program to renovate the Fed's buildings.
• 💰 The renovation costs have reportedly jumped to $2.5 billion, which administration economic adviser Kevin Hassett highlighted.
• 🏛️ White House budget director Russ Vought slammed the overhaul as "ostentatious," comparing it to the Palace of Versailles and noting features like rooftop gardens and premium marble.

Fed's Defense and Market Concerns

• ⚠️ The Fed stated that cost increases were due to unexpected lead and asbestos, leaky pipes, and roofs, but predicted the refurbishment would ultimately deliver cost savings.
• 📈 Any move to oust Powell could closely undermine the central bank's independence and credibility, causing market turmoil.
• 📊 Reports of Trump attempting to fire the Fed chief earlier in the year had previously sparked market volatility.

Potential Successor

• 🔑 Kevin Hassett has been mentioned as a contender to replace Powell, whose term ends next year.