Overview

• President Trump has threatened to remove Chair Jerome Powell if fraud is proven in the Fed’s Washington headquarters renovation and has asked the White House budget office to investigate $2.5 billion in cost overruns.
• The renovation’s budget has climbed from an initial $1.8 billion to $2.5 billion after higher material and labor costs and unexpected asbestos removal.
• Powell insists the upgrades are essential for health, safety and security, denies plans for VIP amenities, and says the project followed federal approvals.
• Budget Director Russell Vought accused Powell of mismanagement in a letter that noted discrepancies between earlier Senate testimony and approved building plans.
• Senior legislators from both parties warn that firing Powell without clear evidence of gross misconduct would undermine central bank independence and could unsettle financial markets.