Overview

• Trump’s consideration of a major lawsuit marks an escalation beyond earlier threats to fire Powell for rate-setting disagreements.
• The Fed maintains the project is budgeted at about $2.4–$2.5 billion, up from $1.9 billion, citing higher labor and materials costs plus historic-preservation and asbestos abatement requirements.
• Powell has disputed the president’s $3.1 billion figure and requested an internal inspector-general review to bolster transparency around the overruns.
• A recent Supreme Court opinion and the Federal Reserve Act bar removal of the chair for policy disputes, pushing the administration toward legal and investigative tactics.
• Speculation over Powell’s successor persists, with names like Kevin Warsh, Kevin Hassett and Christopher Waller under consideration as investors watch for impacts on rate-cut expectations.