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Forbes
6 days ago
- Business
- Forbes
Five Reasons Trump Should Think Twice About Firing Fed Chair Powell
WASHINGTON, DC - NOVEMBER 02: (L to R) U.S. President Donald Trump walks with his nominee for the ... More chairman of the Federal Reserve Jerome Powell on their way to a press event in the Rose Garden at the White House, November 2, 2017 in Washington, DC. (Photo by) It's no secret that Donald Trump does not like how Jerome Powell is managing the Fed and monetary policy. Despite nominating Powell for the job of Fed Chair in 2017, the President lambasts Powell (who Trump has nicknamed Mr. Too Late) every time the Fed's Federal Open Markets Committee meets and doesn't cut interest rates. But President Trump should think again if he thinks getting rid of Powell will get him what he wants. While the President is desperate for the Fed to cut interest rates, firing Powell before his term ends in eight months is no guarantee that rates would drop, and his departure would also likely rattle the financial markets. Below are the top five reasons why it's in the President's interest to let Powell finish his term as Fed Chair: 5. The President will probably lose the case in court. Section 10 of the Federal Reserve Act, states the president can remove any member of the Fed's Board of Governors 'for cause,' such as neglect of duty, corruption, or inefficiency. But the head of the Fed cannot be removed for policy differences such as when to cut the Federal Funds Rate. This is why the Department of Justice is pushing forward with the investigation into the renovations of the Federal Reserve's headquarters and whether it has been mismanaged. But Powell would likely fight any attempt to remove him, and without strong evidence of fraud, the court would either dismiss, or issue an injunction. This could allow Powell to stay on the job until his term ends in May of 2026. 4. If Powell is fired a Biden appointee will take over the Fed, temporarily. If the courts don't block the President from firing Powell, then Fed Vice Chair Philip Jefferson would become responsible for running the central bank until the Senate confirmed a new one. Jefferson was appointed by former President Joe Biden in 2022, and as acting Fed Chair would likely stay the course on interest rates assuming no major changes in economic conditions. Jefferson would also be in charge of other policy matters, regulating banks, and the management of the Fed offices and staff. 3. The markets will react negatively. The stock market has been on a roller roaster ride since Trump re-entered office on January 20th. After steep losses in the first quarter of 2025, the market has largely recovered in response to the President's retreat from his Liberation Day tariffs. But firing Powell would likely set the markets into a tailspin again. Poll after poll has shown that the financial sector doesn't want Trump to push Powell out. And leading bankers have been offering Powell support and warning of a market backlash should he be dismissed. Trump loves to cite a bullish market a sign he is managing the economy well. He would likely lose that message if he fires Powell. 2. Powell is historically good at his job. Since 1954, the Federal Reserve Board's policy-making Federal Open Market Committee (FOMC) has raised interest rates in a series of recurring steps 13 times. In five of them, the Fed has done this without putting the U.S. economy into a tailspin (soft landing), including twice under the leadership of Powell. No other Fed Chair has achieved this feat more than once. Furthermore, Powell and the Fed's steady hand have countered the market anxiety created by the President's aggressive trade policy. 1. Trump will lose his favorite economic scapegoat. Many economists continue to predict that the U.S. economy will slow down given a number of headwinds: the President's push for higher tariffs; layoffs of federal employees and contractors (135,000 firings and early retirements of federal employees, and tens of thousands of contractors to date); and the flood of additional federal debt created by the recently enacted Big Beautiful Bill (BBB). Economic growth and job creation has slowed since Trump took office, with GDP contracting .5% in the first quarter of 2025. And there are some signs that inflation is starting to bubble up. Firing Powell would make it difficult to use him as a scapegoat should the economy go belly up.
Politico
21-07-2025
- Business
- Politico
Trump's big fiscal dominance play
Presented by Editor's note: Morning Money is a free version of POLITICO Pro Financial Services morning newsletter, which is delivered to our subscribers each morning at 5:15 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day's biggest stories. Act on the news with POLITICO Pro. Quick Fix President Donald Trump wants Federal Reserve Chair Jerome Powell to consider the cost of the government's ballooning debt service payments when the central bank meets later this month. It's an enduring theme in his ongoing effort to pressure the Fed chair to lower interest rates. Powell 'is truly one of my worst appointments,' Trump posted on his social network, Truth Social, on Friday. 'We deserve to be at 1% [interest rates], saving One Trillion Dollars a year on Interest Costs.' Here's why that matters: The Fed's primary responsibilities are to keep prices stable and promote maximum employment. When central banks prioritize government borrowing needs over their core mission — economists call this 'fiscal dominance' — it often leads to cascading inflation. If bond investors and consumers assume that central banks lack the ability or political will to contain higher prices from stimulative federal spending, inflation expectations climb. The economic and political fallout can be massive; the subordination of monetary policymaking to accommodate fiscal expansion was a hallmark of recent out-of-control price surges in Argentina and Turkey, and it contributed to the collapse of the Weimar Republic in Germany. So what? While he isn't using the phrase, Trump is making arguments in favor of a form of fiscal dominance. And while there are structural and technical safeguards in place to prevent such an outcome, they are not impenetrable. The Treasury-Fed Accord of 1951 — struck amid rocketing inflation after a nine-year period when the central bank had agreed to keep rates low to help the government finance World War II and its aftermath — formalized the central bank's independence from Treasury with regard to setting borrowing costs. But as former Philadelphia Fed President Charles Plosser has noted, that accord is 'an institutional arrangement, not a legal agreement.' And while the Federal Reserve Act is specific when it comes to the central bank's monetary policy objectives, fiscal considerations invariably factor into how central bankers consider the overall health of the economy. And deficits are expected to climb over the next decade as Trump's 'big, beautiful bill' takes effect. 'It would be very difficult to follow the direction in the Federal Reserve Act — to promote low inflation and full employment — if the Federal Reserve were pursuing a mandate of keeping debt service costs low,' said Lael Brainard, a former Fed vice chair and top economic adviser to President Joe Biden. Still: 'It's not an explicit prohibition, per se, but the dual-mandate responsibilities of the Federal Reserve are explicit.' Another factor to consider: There's an argument emanating from Trump's orbit that the Fed and Treasury need to work hand-in-glove to manage the central bank's balance sheet — the Fed has been a major purchaser of government securities on the open market during periods of stress. That would invariably give the administration more say in decisions that affect interest rates. Kevin Warsh, the former Fed governor who's now a contender to succeed Powell, recently floated the prospect of a new Treasury-Fed accord that would allow the Treasury secretary and central bank chief to 'describe to markets plainly and with deliberation, 'This is our objective for the size of the Fed's balance sheet.'' As Warsh described it, since the Fed's holdings of government securities have a bearing on both fiscal and monetary policy, such an accord wouldn't breach the central bank's independence. Nevertheless, the prospect of a new Treasury-Fed accord would invariably raise questions about Trump's influence over policies that ultimately affect rates. And few expect markets to respond favorably if the president's pressure campaign ultimately undermines faith in the central bank's ability to stick to its mandate as deficits continue to climb. As Brainard told me, 'At the end of the day, it's investors who decide how much they need to be compensated to hold longer-term Treasury securities and longer-term debt more generally. If their view is that inflation is going to be high — and that the Federal Reserve's ability to control inflation has been undermined — they'll simply demand more compensation.' It's Monday — And it's another very busy week on the Hill. As always, send MM tips and pitches to me at ssutton@ Driving the Week Monday … The House Appropriations Financial Services and General Government Subcommittee holds a markup of the FY2026 Financial Services and General Government bill at 5:30 p.m. … The Senate Agriculture Committee holds a markup to vote on Brian Quintenz's nomination to be chairman and a commissioner of the Commodity Futures Trading Commission, along with other nominations … Tuesday … Powell and Fed Vice Chair for Supervision Michelle Bowman speak at the Integrated Review of the Capital Framework for Large Banks Conference, which kicks off at 8:30 a.m. … World Bank President Ajay Banga speaks at the Center for Global Development's conference on development economies at 9:10 a.m. … Senate Finance Committee meets at 9:45 a.m. to mark up the nominations of Joseph Barloon to be a deputy U.S. Trade Representative in the Geneva Office and Brian Morrissey Jr. to be general counsel at Treasury … The Securities and Exchange Commission holds a meeting of the Small Business Capital Formation Advisory Committee at 10 a.m. … Senate Finance holds a hearing on the nominations of Jonathan McKernan to be Treasury undersecretary and Alex Adams to be assistant Health and Human Services secretary for family support … Wednesday … House Financial Services has a second markup hearing scheduled for 10 a.m. … Senate Banking holds a markup to vote on the nominations of Ben DeMarzo to be assistant HUD secretary; Craig Trainor to be assistant HUD secretary; Jovan Jovanovic to be chairman of the Export-Import Bank; Francis Brooke to be assistant Treasury secretary; and David Peters to be assistant Commerce secretary at 10:30 a.m. … Thursday … New home sales data for June is out at 10 a.m. …. House Financial Services ranking member Maxine Waters (D-Calif.) speaks at a Brookings Institution event at 11:30 a.m. … Friday … The House Ways and Means Committee holds a field hearing on 'The One, Big, Beautiful Bill Delivering for American Economy' at 1 p.m. in Las Vegas In his ear — The WSJ's Brian Schwartz and Nick Timiraos reported over the weekend that Treasury Secretary Scott Bessent has been making the case to Trump that he should not try to fire Powell, citing political and legal obstacles as well as the turmoil that action could unleash in markets. — Trump, who's suing the Journal over its report on a birthday missive he allegedly wrote to disgraced financier Jeffrey Epstein, was not happy with the article. 'Nobody had to explain that to me,' he posted on Truth Social on Sunday. 'I know better than anybody what's good for the Market, and what's good for the U.S.A. If it weren't for me, the Market wouldn't be at Record Highs right now, it probably would have CRASHED! So, get your information CORRECT. People don't explain to me, I explain to them!' First in MM: Warren hammers Pulte — Federal Housing Finance Agency Director Bill Pulte has been one of Trump's biggest attack dogs with regard to Powell and has been pushing for the Fed chair's ouster for weeks. The FHFA chief's unusual social media presence — he's repeatedly suggested that Powell will resign — led Massachusetts Sen. Elizabeth Warren on Sunday to send a letter demanding more information about his X usage, his focus on Powell and his work at the housing agency. [Link: ] 'Your prolific activity on X and apparent decision to take time away from your duties as FHFA Director to draft a letter for President Trump to fire Chair Powell are abnormal,' Warren, the top Democrat on Senate Banking, wrote to Pulte. 'Your behavior raises significant questions about your judgment and commitment to operating FHFA in a responsible, competent, and lawful manner.' The FHFA did not respond to a request for comment. In the books— Trump on Friday signed the first major congressional overhaul of cryptocurrency rules into law, Jasper Goodman reports. The GENIUS Act creates bespoke rules for dollar-pegged stablecoins. — And as Declan Harty writes, the new law 'could clear the way for Americans to view crypto as not just a speculative investment but as a lightning-fast way to conduct transactions by circumventing traditional financial players like credit-card intermediaries.' At the regulators Warning — Outgoing Public Company Accounting Oversight Board Chair Erica Williams told Declan that the SEC's shakeup of the industry watchdog is coming as market volatility and a tight economy necessitate strict oversight of companies' audits. 'History tells us what happens when the economy is tight: People cook the books,' she said. Banks v. crypto — The banking lobby is urging the Office of the Comptroller of the Currency to hold off on applications by multiple crypto firms seeking national charters, Victoria Guida reports. In The Economy The grocery economy — The GOP megabill's cuts to the Supplemental Nutrition Assistance Program are poised to devastate independent grocery stores that are concentrated in Trump-friendly low-income communities, Rachel Shin reports. Dissent incoming? — In an interview with Bloomberg TV on Friday, Fed Gov. Christopher Waller hinted that he might dissent if his fellow central bank policymakers move to hold rates steady when they meet next week. Waller has argued that a slowdown in private sector hiring necessitates a cut. What a pisser — Per The Washington Post's David Lynch: 'The tariffs imposed to date also have had some presumably unintended effects. The U.S., for example, is now more dependent upon Russia for urea, a common fertilizer used to grow crops such as wheat, corn and rice.' Wall Street What's the bet? — The possibility that Trump may attempt to fire Powell has created a new trade for Wall Street investors. Here's a big one, per Bloomberg's Ye Xie: 'Buy two-year Treasuries and sell US 10-year notes.' 'Woke' political risk — Trump threatened to block a deal that would allow the NFL's Washington Commanders to build a new stadium in DC 'if they don't change the name back to the original 'Washington Redskins,'' POLITICO's Cheyanne Daniels reports. The team's owner Josh Harris — a co-founder of the private credit behemoth Apollo Global Management — said in February that the team wouldn't be changing its name anytime soon. 'Anti-woke' political risk — The NYT's Mike Isaac and Ryan Mac have a story about how the Silicon Valley venture powerhouse Sequoia Capital is facing blowback from partner Shaun Maguire's ultra-MAGA social media presence. Maguire's recent X post claiming that New York City mayoral candidate Zohran Mamdani is lying to advance 'his Islamist agenda' has been blasted by tech industry participants for being Islamophobic. Jobs report Wharton professor Christina Parajon Skinner, a former legal counsel at the Bank of England, has joined Treasury as a deputy assistant secretary for the Financial Stability Oversight Council, according to her LinkedIn.
The Hill
20-07-2025
- Business
- The Hill
Trump seizes on Fed renovations as potential Powell ouster
President Trump has seized on the Federal Reserve's multibillion-dollar makeover as a possible avenue for finally ousting its politically independent chair, Jerome Powell. Trump has for months criticized Powell over the Fed's refusal to cut interest rates, a decision partially rooted in uncertainty surrounding the president's tariffs. Trump has expressed his desire to remove Powell, whom he appointed during his first term, but the legality in which he could do so remains a key question. With the Supreme Court signaling Trump would need a valid reason, the president has held back from terminating the central banker even as he doesn't hesitate to eviscerate other agencies' independence. But Trump might now see his opening at the Fed. Some $2.5 billion in renovations to the central bank's headquarters in Washington have put Powell in the hot seat over management of the project, which has cost about $600 million more than initially expected. Asked Tuesday if the pricey updates are a fireable offense, Trump said, 'I think it sort of is.' Legal scholars say removing Powell over the renovations would be an uphill battle of its own. Powell could claim Trump didn't have 'cause' to terminate him, as required by federal law. 'If Trump removes Powell, and Powell does push back, I think he would say that this is a blatantly illegal and abusive use of the president's power,' said Todd Phillips, a law professor at Georgia State University. Unlike some other independent agencies' governing statutes, which expressly list out fireable offenses, like inefficiency, neglect of duty and malfeasance in office, the Federal Reserve Act does not. It merely states the president must have 'cause.' 'It can't just be that the president doesn't like the tie that Jay Powell is wearing on a certain day,' Phillips said. Still, Trump would be the first president in modern history to fire the Fed chair, making any theory untested. 'Can the president fire Jerome Powell? I'm really not sure,' Speaker Mike Johnson (R-La.), a former constitutional lawyer, told reporters in the Capitol. Though Trump could cite the renovations, he might have trouble proving the board's oversight ran afoul of the law. The Federal Reserve Act provides that the Fed's board may 'maintain, enlarge, or remodel any building or buildings so acquired or constructed' and retains 'sole control' of those buildings. As Trump muses about the possibility of firing Powell, administration officials are stepping up investigations into the renovations, laying the groundwork for it to potentially become a valid rationale. Russell Vought, director of the Office of Management and Budget, wrote in a letter to Powell last week that Trump is 'extremely troubled' by the Fed chair's management, suggesting apparent changes to the overhaul don't match up with his testimony to Congress. Vought also suggested Powell failed to properly consult with the National Capital Planning Commission (NCPC), which reviews certain building projects in Washington, D.C. Trump recently installed three of his White House officials at the commission. White House staff secretary Will Scharf, most well-known for handing Trump executive orders to sign in the Oval Office, now serves as chair. He works alongside White House Deputy Chief of Staff Michael Blair and Stuart Levenbach, who works in Vought's office. 'We should not be made fools of by those that come ahead of us,' Blair said at a commission meeting this month as he criticized the renovation project, demanding more information from Fed leaders. Powell pushed back on the criticism in a Thursday letter, saying the Fed has 'taken great care.' 'We take seriously the responsibility to be good stewards of public resources as we fulfill the duties given to us by Congress on behalf of the American people,' Powell wrote. Phillips, the Georgia State law professor, said the renovations would be a 'pretextual reason' for firing Powell, given that the costs of the project have long been public and Trump is only now raising them as a concern. Paul Schiff Berman, a law professor at George Washington University, also stressed there's no allegation Powell is enriching himself, and the renovations aren't part of his core role setting monetary policy. 'I think there would be strong arguments even if Trump tried to fire Powell for cause that the rationale being given is neither sufficient to show malfeasance and that it's probably pretextual, because it's clear that he has long wanted to fire Powell regardless, for political reasons,' said Berman. Citing the renovations would break with how Trump has treated other independent agencies, where he has moved without hesitation to terminate officials with no rationale, even those with removal protections. Lawsuits are now pending over Trump's firings at the National Labor Relations Board, Merit Systems Protection Board, Federal Labor Relations Authority, Privacy and Civil Liberties Oversight Board, Equal Employment Opportunity Commission, National Credit Union Administration, Consumer Protect Safety Commission, National Transportation Safety Board and Federal Trade Commission (FTC). Many of the fired commissioners have succeeded in the lower courts, most recently on Thursday, when a district judge ordered the reinstatement of FTC Commissioner Rebecca Slaughter. However, the Trump administration believes the real fight is at the Supreme Court, the only court with authority to overrule its 90-year-old precedent permitting removal protections for some agencies. The administration has latched onto signals from several conservative justices that they may further limit the precedent or outright disavow it. But even those sympathetic justices indicate the Federal Reserve may be the rare exception where the president can't fire the chair on a whim. 'The Federal Reserve is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States,' the court cautioned in an unsigned May ruling as it greenlit Trump's firings at two independent labor agencies. Berman said he believes Powell could mount a successful legal challenge if Trump doesn't purport to have cause. 'It was, I think, a signal that even if the Supreme Court gets rid of the independence of many other agency heads, they're not inclined to get rid of the for-cause removal protection that protects the Fed chair,' said Berman. Many Republican lawmakers have called for Powell to resign or for Trump to pull the trigger on firing him. But at least one Republican, Sen. Thom Tillis (R-N.C.), has urged the president to keep Powell in the job, warning it would disrupt financial markets and threaten long-term economic growth. 'While dramatic fluctuations may not make the wealthy lose sleep at night, they can seriously harm those working-class Americans I grew up with who are already struggling to get by,' Tillis wrote on X. 'I have been not happy with the leadership there, personally,' he continued. 'But I'm honestly not sure whether that executive authority exists. I'd have to look at that.'
Time of India
19-07-2025
- Business
- Time of India
Trump might fire Jerome Powell, but it could spark a legal war like nothing America's seen before
US President Donald Trump is once again questioning whether Federal Reserve Chairman Jerome Powell should continue in his position. However, removing Jerome Powell could result in a legal battle unlike any other in American history. From Supreme Court precedents to agency independence, this potential battle is already taking shape behind the scenes. Donald Trump may want to fire Fed Chairman Jerome Powell, but doing so could spark a complicated legal battle. With only 10 months left in Powell's term, Trump may simply wait him out. Explore courses from Top Institutes in Select a Course Category Digital Marketing Data Science Technology PGDM Artificial Intelligence Product Management Project Management Public Policy Leadership Design Thinking healthcare Cybersecurity Operations Management Others Finance Degree Management Data Analytics Healthcare MBA others CXO MCA Data Science Skills you'll gain: Digital Marketing Strategy Search Engine Optimization (SEO) & Content Marketing Social Media Marketing & Advertising Data Analytics & Measurement Duration: 24 Weeks Indian School of Business Professional Certificate Programme in Digital Marketing Starts on Jun 26, 2024 Get Details Skills you'll gain: Digital Marketing Strategies Customer Journey Mapping Paid Advertising Campaign Management Emerging Technologies in Digital Marketing Duration: 12 Weeks Indian School of Business Digital Marketing and Analytics Starts on May 14, 2024 Get Details The Fed Chair has been clear about his intentions. His removal is "not permitted by law," he stated earlier this year, and he would not leave if Trump attempted to fire him. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas Prices In Dubai Might Be More Affordable Than You Think Villas In Dubai | Search Ads Get Quote Undo ALSO READ: ESPN anchors go too far - shocking on-air stunt on Astronomer CEO Andy Byron and Kristin Cabot sparks outrage The Wall Street Journal claims that Fed officials have been secretly preparing for a legal battle since Trump's first term, when the president also considered firing the chair. Live Events What makes firing Jerome Powell legally complicated? Jerome Powell's case is strong because it relies on certain Fed autonomy protections that are already included in US law. The Federal Reserve Act, which established the central bank in 1913 and was revised in 1935, stipulates that each Fed board member will serve for a period of 14 years "unless sooner removed for cause by the President,' as per a report. Powell is protected under federal law unless he is removed "for cause," which has never been fully tested in court. The "for cause" requirement was designed to increase the Fed's independence by making it more difficult for a president to remove its president-appointed board members. Although the Supreme Court's stance on the matter is unclear, there are indications that the court would intervene if Trump took action, as per a report. Just this week, a federal judge ruled that Trump's prior firing of FTC Commissioner Rebecca Slaughter was illegal, citing a 1935 Supreme Court case, Humphrey's Executor v. United States, that limited the president's power to remove leaders of independent agencies. The judge referenced a Supreme Court decision from ninety years ago that restricts the president's authority to fire independent agency board members unless there is negligence or misconduct. Powell has some protection from that precedent. What does 'for cause' really mean in this context? While the law says 'for cause,' it doesn't define exactly what that means in the context of firing the chair of the Fed, especially since the statute doesn't specifically reference the chair's role. Historically, 'for cause' has been interpreted to mean serious misconduct, like inefficiency, neglect of duty, or malfeasance. But so far, those standards haven't been tested in court for a Fed chair. Now, Donald Trump and his allies are suggesting a potential reason: the $2.5 billion renovation of the Fed's Washington headquarters. Trump recently claimed there might be fraud involved in the project, telling reporters, 'It's possible there's fraud,' and hinting that it 'sort of is' a fireable offense. Although he clarified that he wasn't actively planning to remove Powell, Trump also said, 'I don't rule out anything.' Kevin Hassett, former National Economic Council director and a rumored contender to replace Powell, said last weekend that the question of presidential firing authority is 'being looked into.' Still, he called it a 'highly uncertain legal matter.' Behind the scenes, White House officials appear unsure of their legal footing. According to Politico, outside attorneys warned that firing Powell over the renovation project would likely not hold up in court. One anonymous official even admitted, 'Whether or not it's illegal, I don't know. But is it a good thing to point out to damage this guy's image? Yeah.' Could Donald Trump actually pull it off before Powell's term ends? While the legal challenges would be significant, time may actually be Trump's biggest obstacle. Powell's term ends in less than a year, in May 2026. Some legal scholars think Trump may ultimately decide to let the clock run out. Eric Chaffee, a business law professor at Case Western Reserve University, said he believes Powell would win any court fight. But more importantly, Chaffee says Trump may not see the battle as worth it. FAQs Can Donald Trump legally remove Jerome Powell? Not easy. U.S. law requires "cause" for firing a Fed board member, and Powell has stated that he will oppose any such move. What does Donald Trump accuse Powell of? To justify a potential dismissal, Trump and allies have cited a $2.5 billion Fed building renovation, raising unproven fraud concerns.
Yahoo
19-07-2025
- Business
- Yahoo
Trump appointees pushed for marble in Fed renovation project
By Ann Saphir (Reuters) -President Donald Trump's appointees to a Washington project review board pushed the Federal Reserve five years ago to use more marble for a renovation project at its headquarters campus that the White House is now using as the basis for attacks on central bank Chair Jerome Powell, saying cost overruns and "ostentatious" features like the premium marble the Fed incorporated into its final design are evidence of mismanagement by the Fed chief. Documents from the Commission of Fine Arts, established by Congress in 1910 to review and approve certain building projects in the nation's capital, show the Fed proposed a glass curtain wall for part of the project. Such a design was in line with the Fed's view that the central bank "should become a more transparent organization," according to minutes from a January 2020 CFA meeting. The proposal met stiff opposition from commissioners appointed by Trump, who issued an executive order later that year calling for the use of classical architecture for public buildings in the capital "absent exceptional factors." He reissued that same order on the first day of his current term in office. At the January CFA meeting, Commissioner Justin Shubow argued that glass is "impermanent and fragile," and said the Fed's headquarters ought to look solid and permanent as befitting a bank building. Shubow joined fellow Trump appointees in supporting a proposal that the Fed's next submission include a design in "white Georgia marble." The non-Trump appointees voted that plan down, but six months later the Fed's architects returned with a new proposal that did include that marble, the commission's documents show. The renovation plan was finalized in 2021. The push by the Trump appointees for use of the marble was first reported by the Associated Press. Trump has lashed out at Powell almost daily over the fact the Fed has not delivered the lower interest rates Trump has demanded since his return to the White House in January. Earlier this week he discussed firing Powell with a group of House Republicans during a meeting at the White House, but after it was reported that Trump was preparing to do so he reversed course and said it was "highly unlikely" he would fire the Fed chief. The Federal Reserve Act prohibits firing Fed Board of Governors members over policy disputes, saying they may only be removed for "cause" - widely thought to mean malfeasance, neglect of duty or fraud. A recent Supreme Court opinion in a case involving Trump's dismissal of other federal officials sent a strong signal the high court would not allow to stand a firing of Powell for refusing to cut rates. In the weeks since, White House officials have begun to focus on the cost overruns at the Fed's headquarters project. Documents show it is about $600 million over its original cost estimate of about $1.8 billion. In a move that would seem to try to lay the groundwork for a causal dismissal, Director of the Office of Management and Budget Russell Vought last week sent Powell a letter, accusing him of mismanagement and demanding answers to a list of questions about the project. Powell on Thursday responded, saying "As explained on the Board's public website, we take seriously the responsibility to be good stewards of public resources as we fulfill the duties given to us by Congress on behalf of the American people." "We have taken great care to ensure the project is carefully overseen since it was first approved by the Board in 2017," he said.
