Overview

• President Trump told reporters he is highly unlikely to remove Jerome Powell before his term ends in May 2026 and described the Fed chair as “a numbskull” for keeping rates high
• White House deputies plan to tour the Fed’s $2.5 billion headquarters renovation this Thursday as part of an intensified project review
• Treasury Secretary Scott Bessent called for an exhaustive internal review of the Fed’s non‐monetary functions but said he sees no reason for Powell to step down now
• Legal experts warn that firing Powell “for cause” would trigger a protracted judicial fight under the Federal Reserve Act and likely reach the Supreme Court
• Investors have remained skittish about central bank independence, with the S&P 500 briefly sliding and the dollar weakening on reports of White House discussions about Powell’s potential ouster