Overview
- Trump told Reuters he has no immediate plan to remove Jerome Powell, while saying it is too early to decide on his future and naming Kevin Warsh and Kevin Hassett as potential successors.
- The Justice Department’s criminal inquiry focuses on alleged cost overruns tied to a roughly $2.5 billion renovation of two historic Federal Reserve buildings in Washington.
- Powell disclosed the investigation and released a brief video denying wrongdoing, arguing the pressure stems from setting rates based on the public interest rather than the president’s preferences.
- European officials, including Finland’s Olli Rehn, voiced solidarity with Powell and warned that weakening the Fed’s independence could lift inflation and threaten financial stability.
- Miran criticized foreign central bankers’ comments as inappropriate, and Powell’s term as chair ends in May though he remains on the Fed Board through 2028.