Powell asks watchdog to probe Fed HQ plan amid Trump pressure
Speculation has grown that Trump, who has clashed with Powell for refusing to cut interest rates, might try to use the renovations to remove the Fed chief 'for cause,' as allowed by statute.
Still, it is unclear what type of behavior would fall under that standard. It has generally been interpreted to mean that the president cannot fire Fed board members over policy disagreements, and the Supreme Court signaled in a recent order that it might block a move to remove the Fed chair without cause.
The headquarters renovation, which has been underway for multiple years, is a new front in the administration's criticism of the Fed. Powell was asked at a hearing last month by Senate Banking Chair Tim Scott about the project after a New York Post article characterized it as akin to the 'Palace of Versailles,' a characterization the Fed chief disputed.
White House Budget Director Russ Vought — along with the National Capital Planning Commission — is investigating Powell over both the testimony he provided to Congress and questions about whether the construction project adhered to the National Capital Planning Act.
National Economic Council Director Kevin Hassett said on ABC News on Sunday that the question of whether Trump can fire the Fed chair is 'a thing that's being looked into.' Hassett is one of four candidates to replace Powell when his term ends next year, according to people familiar with the administration's deliberations.
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