Trump Signals Possible Firings Over $2.5B Fed Renovation

President Trump has sharply criticized Federal Reserve Chair Jerome Powell over a $2.5 billion renovation of the Federal Reserve headquarters, suggesting it could be a fireable offense due to concerns about Powell's management and transparency during congressional testimony. Trump, who appointed Powell and whose term runs until 2026, has repeatedly expressed frustration with Powell's monetary policies, particularly his reluctance to lower interest rates swiftly. The renovation project, initially budgeted at $1.9 billion, has seen cost overruns attributed to unexpected structural issues, prompting Powell to request an additional review by the Fed’s inspector general. Trump has also dismissed Treasury Secretary Scott Bessent as a top replacement candidate, with National Economic Council Director Kevin Hassett emerging as a frontrunner. Experts, including JPMorgan Chase CEO Jamie Dimon, have warned that political interference in the Federal Reserve could undermine its independence and lead to adverse economic outcomes. Despite Trump's public pressure and harsh personal attacks, the Fed has maintained its data-driven approach, balancing economic risks amid uncertainty from tariffs and inflation concerns.