Overview

• President Trump said he may permit a “large” lawsuit against Fed Chair Jerome Powell over alleged mismanagement of the Federal Reserve headquarters renovation.
• White House spokeswoman Karoline Leavitt confirmed the administration is considering legal action following an OMB report that flagged roughly $700 million in cost overruns.
• The Federal Reserve disputes the higher figures, maintaining the renovation is estimated at $2.5 billion versus Trump’s claim of over $3 billion.
• July’s 2.7 percent year-on-year inflation reading has lifted market hopes for a rate cut at the Fed’s September 16–17 meeting.
• Analysts warn that politicized legal threats could undermine central-bank independence and heighten volatility in U.S. financial markets.