Overview
- At a Mar-a-Lago press conference, President Trump called Jerome Powell a "fool," said he would love to fire him, and vowed he is "probably" bringing a gross incompetence lawsuit over the Fed’s headquarters renovation.
- Trump said he will announce his preferred candidate to replace Powell in January, keeping the shortlist under wraps after previously praising several contenders.
- Bank of America CEO Brian Moynihan warned on CBS that "the market will punish people" if the Federal Reserve loses its independence, urging restraint in political interference.
- Trump again claimed the renovation could exceed $4 billion, a figure that conflicts with the Fed’s roughly $2.5 billion estimate for the long-planned upgrades to its Washington facilities.
- The dispute unfolds shortly after the Fed’s third straight rate cut in December, which lowered the federal funds rate to 3.5%–3.75%, with a Supreme Court hearing on the attempted removal of Governor Lisa Cook set for January.