Overview

• Trump said firing Powell is “highly unlikely” despite suggesting fraud over the Fed’s headquarters project could justify removal.
• OMB Director Russell Vought has called for an on-site inspection of the Fed’s multibillion-dollar building renovation to assess cost overruns.
• Jerome Powell denied mismanagement and has asked the Fed’s independent inspector general to conduct a fresh review of the project.
• Federal law restricts removal of a Fed chair to proven misconduct, and the Supreme Court has signaled its recent ruling may not extend to the central bank.
• Financial markets briefly tumbled on firing rumors but recovered after Trump downplayed the prospect of immediately ousting Powell.