Overview

• Office of Management and Budget Director Russ Vought has launched a formal probe into the Federal Reserve’s $2.5 billion Washington headquarters renovation, citing alleged mismanagement and deviations from approved plans.
• National Economic Council Director Kevin Hassett affirmed that President Trump retains authority to fire Jerome Powell “for cause” based on findings from the renovation inquiry.
• Fed Chair Jerome Powell has requested an inspector general review of the cost overruns to reinforce the central bank’s transparency and defend its autonomy.
• The Federal Reserve published a detailed FAQ online to refute claims of ostentatious features and explain drivers of the $700 million budget increase.
• Bipartisan lawmakers have warned that any attempt to remove Powell risks undermining U.S. financial stability and eroding long-standing protections for central bank independence.