Debate Over Fed Chair Powell's Tenure Amidst Renovation Cost Controversy
U.S. President Donald Trump might seek to fire Federal Reserve Chair Jerome Powell over alleged $700 million cost overruns on Fed's headquarters renovation. Trump's administration demands answers while Powell defends the project's necessity for safety and consolidation. Congressional and public debate continues over Trump's authority to remove Powell.
The controversy over a significant renovation project at the Federal Reserve's Washington headquarters has intensified, with U.S. President Donald Trump's administration questioning the costs and the role of Chair Jerome Powell. Trump is considering firing Powell over alleged $700 million cost overruns, a move driven by Powell's perceived failure to lower interest rates.
Kevin Hassett, White House economic adviser, indicated that Powell's removal would depend on the answers received regarding the criticized renovation. Costs have reportedly been inflated due to necessary safety measures and material expenses, with Powell maintaining the project is essential to maintain a safe environment.
Critics, including Vice President JD Vance, accuse the Federal Reserve of being slow in addressing financial issues, both during Biden's administration and now. The debate has raised questions about Trump's authority to dismiss Powell and the broader independence of the Fed, prompting reactions from Congress and potential candidates for future leadership positions.
(With inputs from agencies.)
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