Overview

• Trump’s tour of the Fed’s renovation site highlighted a project pushed $700 million over its $2.5 billion budget as leverage to demand lower borrowing costs.
• Powell publicly rejected the president’s $3.1 billion estimate, noting that an unrelated building was incorrectly folded into the renovation total.
• Trump threatened to remove Powell if irregularities were confirmed, but a Supreme Court ruling prohibits dismissals of Fed governors over policy disputes.
• The Fed signaled it will keep its benchmark rate at 4.25–4.5% during next week’s FOMC meeting, citing persistent inflationary pressures.
• Major investors such as Pimco warned that any political interference with Fed autonomy could destabilize financial markets.