Overview

• President Trump cited roughly $600 million in overruns on the Fed’s Washington headquarters overhaul as potential “cause” to dismiss Jerome Powell.
• OMB Director Russell Vought flagged discrepancies between Powell’s congressional testimony and project changes in a letter expressing Trump’s “extreme” concern.
• Treasury Secretary Scott Bessent denied advising Trump against firing Powell and publicly called for a comprehensive review of the Federal Reserve’s operations.
• House Republicans remain divided, with Rep. Dan Meuser planning an oversight probe into the renovation while others caution against politicizing central bank independence.
• Legal experts warn that the Federal Reserve Act allows removal of the chair only “for cause” without defining it, making any attempt to oust Powell legally uncertain.