Tensions between the White House and the U.S. central bank are escalating once again. President Donald Trump may have finally found a way to remove Federal Reserve Chair Jerome Powell — and it all centers around a suspicious budget overrun worth hundreds of millions of dollars.


🔹 The Trigger: A Lavish Fed Renovation Project

The Fed is under fire for a controversial renovation project at its Washington headquarters. The budget appears to be over $700 million above the original estimates. Director of the Office of Management and Budget Russ Vought seized the opportunity and sent Powell a sharp letter on July 10, questioning the project's legality and requesting clarification.


🔹 One-Week Ultimatum — A Ticking Time Bomb

The Fed has seven working days to respond, with the deadline falling at the end of this week. This timing could give Trump an opening to act just before the next Fed meeting on July 29.


🔹 More Than Just a Budget Dispute

The White House has been pressuring Powell for a long time to cut interest rates. Trump’s administration sees Powell’s monetary stance as overly restrictive and harmful to economic growth. In the past, even rumors of Powell’s removal have shaken the markets and caused bond yields to spike. This time, it may go beyond speculation.


🔹 Hassett in the Wings?

In an interview with ABC, National Economic Council Director Kevin Hassett admitted that “if there is a justification, yes, the president could remove him.” He also hinted that the Fed’s response would heavily influence what comes next. There are growing rumors that Hassett himself could be Trump’s preferred replacement — setting the stage for the first-ever removal of a Fed Chair in history.


🔹 Time Is Running Out — Powell’s Fate Hangs by a Thread

Powell’s term runs until May next year, but if Trump chooses to act now, an unprecedented showdown could happen this year. At stake is not only the Fed’s independence but also global trust in U.S. monetary policy.

The question remains: Will Powell become the casualty of a budget war — or is this just another strategic move in Trump’s political chess match?



#Powell , #Fed , #FederalReserve , #TRUMP , #TradingCommunity

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