Overview

• President Trump conducted an unannounced tour of the Fed’s Washington headquarters renovation to press allegations that costs have swelled to $3.1 billion.
• Fed Chair Jerome Powell publicly contested the figure, saying Trump included an unrelated building and that no one at the Fed cited such an overrun.
• Trump sidestepped threats of ousting Powell and reiterated his demand for swift interest-rate cuts from the current 4.25–4.50 percent range.
• Treasury Secretary Scott Bessent publicly defended Powell’s tenure, noting that U.S. law allows removal of a Fed chair only for proven misconduct.
• Pimco’s chief investment officer warned that financial markets view central-bank independence as vital and could react sharply to any political interference.