Overview

• President Trump intensified personal attacks on Jerome Powell on TruthSocial, labeling him “Tardón” and “idiota” while accusing the Fed of stifling the housing market with high rates.
• Trump renewed criticism of the Fed’s Washington headquarters project after costs surged from $1.9 billion to over $2.5 billion.
• The Federal Reserve Act permits removing a chair only for misconduct and no president has ever dismissed a Fed chief, a safeguard underscored by Republican senators warning against political interference.
• Financial markets have reacted with volatility in the dollar and U.S. Treasury yields amid ongoing talk of Powell’s potential ouster.
• Speculation persists over possible successors—Scott Bessent, Kevin Hassett, Kevin Warsh and Christopher Waller—but no formal removal proceedings have been launched.