Trump calls for Powell to resign over Fed renovation, asks attorney general to review report

In a TruthSocial post, Donald Trump is calling for Jerome Powell to resign from the Fed Board over alleged mismanagement and cost overruns in the Federal Reserve headquarters renovation. He says he has asked Attorney General Todd Blanche to review an inspector general’s report and determine what action to take. Trump cites a projected cost of at least $2.5 billion and alleged shortcomings in cost estimates and construction safeguards. He threatens a government lawsuit if Powell does not resign. His suggestion that costs could reach $3.5–$4 billion is his own forecast. Analysis: Trump is turning the Fed renovation dispute into another pressure point against Powell. The key development is his statement that he has asked the attorney general to review the report and determine what action to take. That goes beyond criticism of construction costs, although the post does not establish that a lawsuit or other legal action has been initiated. For traders, the issue is whether that review develops into a broader challenge to the Fed’s ability to make policy decisions without political pressure. The construction allegations themselves do not tell us where interest rates are heading. Also, Trump’s suggestion that the final bill could reach $3.5 billion or $4 billion is his own projection, distinct from the $2.5 billion figure he attributes to the report. The next question is what the review produces and how the Fed responds. In his favorite words, it sounds like a witch hunt. See the post here This article was written by Greg Michalowski at investinglive.com.