A political storm is brewing in Washington, and at the center of it is Federal Reserve Chair Jerome Powell. President Donald Trump may have just found the leverage he needs to unseat him — and it all revolves around a costly renovation that’s sparking fresh controversy.
🔹 The Flashpoint: A $700 Million Budget Blowout
The Federal Reserve’s Washington, D.C. headquarters is undergoing a renovation — but the project has now come under scrutiny for going more than $700 million over its original budget. That staggering overrun has raised red flags in the White House, with Office of Management and Budget Director Russ Vought firing off a pointed letter to Powell on July 10, demanding answers and calling the project's legality into question.
🔹 A Deadline Looms
The Fed has been given just seven working days to explain the budget mess — a clock that runs out by the end of this week. Conveniently, the timing may offer Trump a narrow window to take action right before the next Fed meeting on July 29.
🔹 Bigger Than a Construction Dispute
This isn’t just about construction costs. The Trump administration has clashed with Powell for years over interest rate policy, accusing him of slowing economic growth by keeping rates too high. Past whispers of Powell’s removal have rattled markets — but now, the whispers are getting louder.
🔹 Enter Kevin Hassett?
Kevin Hassett, head of the National Economic Council, didn’t rule out Powell’s removal in a recent interview with ABC. In fact, he hinted that if the Fed’s response doesn’t satisfy the White House, action could follow. Some insiders believe Hassett himself could be in line to replace Powell — a move that would be unprecedented in U.S. history.
🔹 A Critical Crossroads for the Fed
Though Powell’s term runs until May of next year, the coming days could prove decisive. A dramatic shake-up at the Fed would not only test the limits of presidential power but also send shockwaves through global markets, potentially undermining confidence in U.S. monetary policy.
So the question stands: Is Powell on the brink of becoming the first Fed Chair ever removed by a sitting president — or is this a high-stakes bluff in Trump’s ongoing war with the central bank?
#TrumpVsPowell #FederalReserve #Fed #Trump #FinancialNews
Stay ahead of the curve — follow us for the latest updates in crypto, markets, and politics.
