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.
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.
Source: Investing Live - News
