Overview
- President Trump told Reuters he has no immediate plan to remove Jerome Powell, describing a “holding pattern” as a Justice Department probe proceeds.
- Powell disclosed grand-jury subpoenas tied to cost overruns on a roughly $2.5 billion Fed headquarters renovation and called the case a pretext to influence rate policy.
- Trump said he is considering Kevin Warsh or Kevin Hassett to lead the central bank next and ruled out Treasury Secretary Scott Bessent, with an announcement expected in the coming weeks.
- More than a dozen global central bankers publicly backed Powell’s independence, and leading economists including Janet Yellen cautioned that politicizing the Fed could damage inflation control and markets.
- Several Republican senators signaled they would withhold confirmations for Fed nominees until the matter is resolved, as Trump dismissed independence concerns by saying, “I don’t care.”