Overview

• President Trump told reporters he could dismiss Jerome Powell “unless he has to leave for fraud” over the Federal Reserve’s $2.5 billion headquarters renovation and asked House Republicans if they supported his removal.
• Office of Management and Budget Director Russell Vought called for an on-site inspection of the renovation and accused Powell of mismanaging the multibillion-dollar project.
• Powell sent a formal response defending the renovation’s oversight and compliance with approved plans and asked the Fed’s independent inspector general to review its budget.
• Columbia Law School’s Lev Menand and several Republican lawmakers said there is no evidence of misconduct to justify firing Powell under the Federal Reserve Act.
• Wall Street executives warn that removing a Fed chair without clear cause would undermine central bank autonomy and risk destabilizing financial markets.