Overview

• On July 24, Trump toured the Fed’s Marriner S. Eccles and East Building renovation site and challenged Powell’s figures, labeling costs closer to $3.1 billion rather than the Fed’s $2.5 billion estimate.
• The president repeated his call for sharp interest rate cuts to spur growth and ease borrowing costs as Powell maintains a data-driven approach and holds rates steady.
• Trump declared that removing Powell is “not necessary” for now, pausing talk of firing him even as White House counsel refines possible ‘for cause’ arguments tied to the renovation.
• Fed officials defend the multiyear, $2.5 billion overhaul as critical to remove asbestos, replace outdated systems and enhance security, with an inspector general review under way and a fall 2027 completion target.
• Investigations by the Office of Management and Budget and the FHFA into cost overruns continue as the White House weighs legal options, underscoring tensions over central bank independence.