Overview

• A late July tour of Federal Reserve headquarters saw Trump spotlight alleged cost overruns while pausing any immediate move to dismiss Powell, who remains in office until May 2026.
• The president publicly affirmed he will not fire Powell before his term ends, citing fears of market disruption despite previously drafting removal letters.
• Probes by the Federal Housing Finance Agency and the Office of Management and Budget target the Fed’s $2.5 billion renovation project as potential grounds to establish “for cause” dismissal.
• Legal authorities point to the Federal Reserve Act of 1913 and a recent Supreme Court decision as barriers to removing the Fed chair absent proven misconduct.
• Academic analyses reveal Trump’s critiques of Fed policy correlate almost exclusively with his tenure in the White House rather than macroeconomic conditions, highlighting political motivations.