Overview
- At a Mar-a-Lago press conference, President Trump called Jerome Powell a “fool” and said he is weighing a “gross incompetence” lawsuit tied to Federal Reserve headquarters renovations, citing costs above $4 billion, a figure contradicted by Fed estimates near $2.5 billion.
- Trump said he would “love to fire” Powell and suggested he still might, though law and precedent restrict removing leaders of independent agencies without cause and the Supreme Court will hear a related case on Gov. Lisa Cook in January.
- He signaled he will announce a successor in January, with reported contenders including Kevin Hassett, Kevin Warsh, Christopher Waller, Michelle Bowman and Rick Rieder.
- The Federal Reserve cut rates for a third straight meeting in December to a 3.5%–3.75% target range, a move Trump argued should have been larger as he presses for faster easing.
- Bank of America CEO Brian Moynihan said the market “will punish people if we don’t have an independent Fed,” reflecting broader concern on Wall Street and within the Fed about political interference.