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White House Seizes on Fed Renovations as Opening to Oust Powell​

A dispute over the Fed’s renovation of its headquarters could provide the pretext to attempt the removal of Jerome Powell over interest-rate disagreements​


🎁 —> https://www.wsj.com/economy/central...f?st=8BPVhU&reflink=desktopwebshare_permalink

“White House advisers are ramping up a pressure campaign against Federal Reserve Chair Jerome Powellby alleging he either lied to Congress about the Fed’s headquarters renovation or grossly mismanaged it, potentially creating a new legal avenue to oust him.

The complaints have opened a new line of attack against Powell as part of a broader push for him to lower interest rates. It follows President Trump’s demands that the Fed consider federal debt-service costs when setting rates, something the institution has strongly resisted after securing its independence from the Treasury Department in 1951.

… Fed scholars called the latest developments a transparent attempt, at best, to open up a new pressure front on the central bank and, at worst, a dangerous step toward manufacturing a legal justification for Powell’s removal.

… The effort echoes a similar pressure campaign by President Richard Nixon ahead of the 1972 election, when his administration planted false stories about Fed Chair Arthur Burns seeking a pay raise while pushing unpopular economic policies—a tactic aimed at undermining the central bank’s credibility.

The building brouhaha has emboldened a faction within the Trump administration that has long wanted to challenge Fed independence. …”
 
nycfan said:

White House Seizes on Fed Renovations as Opening to Oust Powell​

A dispute over the Fed’s renovation of its headquarters could provide the pretext to attempt the removal of Jerome Powell over interest-rate disagreements​


🎁 —> https://www.wsj.com/economy/central...f?st=8BPVhU&reflink=desktopwebshare_permalink

“White House advisers are ramping up a pressure campaign against Federal Reserve Chair Jerome Powellby alleging he either lied to Congress about the Fed’s headquarters renovation or grossly mismanaged it, potentially creating a new legal avenue to oust him.

The complaints have opened a new line of attack against Powell as part of a broader push for him to lower interest rates. It follows President Trump’s demands that the Fed consider federal debt-service costs when setting rates, something the institution has strongly resisted after securing its independence from the Treasury Department in 1951.

… Fed scholars called the latest developments a transparent attempt, at best, to open up a new pressure front on the central bank and, at worst, a dangerous step toward manufacturing a legal justification for Powell’s removal.

… The effort echoes a similar pressure campaign by President Richard Nixon ahead of the 1972 election, when his administration planted false stories about Fed Chair Arthur Burns seeking a pay raise while pushing unpopular economic policies—a tactic aimed at undermining the central bank’s credibility.

The building brouhaha has emboldened a faction within the Trump administration that has long wanted to challenge Fed independence. …”
Click to expand...
“… Investors have taken note because firing a Fed chair for political reasons would shatter decades of established norms that underpin global confidence in the U.S. dollar. “If President Trump and his allies launch this assault on the Fed, they will introduce profound instability into virtually every aspect of the global economy,” Conti-Brown said.

… Cost increases have partly reflected unforeseen construction conditions such as more asbestos than anticipated, toxic contamination in the soil, and a higher-than-expected water table, the Fed said.

… The renovation’s ballooning costs reflect a familiar pattern in Washington construction. Like many federal projects constrained by the capital’s height or other aesthetic restrictions, the Fed had to build expensive underground space instead of adding floors.

Congress’s Capitol Visitor Center faced similar constraints and saw costs explode from an initial $71 million estimate to more than $600 million when it opened in 2008.

The Fed’s project, which its board approved in 2017, involves retrofitting two historic buildings on Constitution Avenue alongside the National Mall. It completed the refurbishment of a third adjacent building in 2021….”
 
BillOfRights said:
Why?
Click to expand...
🎁 —> https://www.wsj.com/economy/economi...6?st=UyCutR&reflink=desktopwebshare_permalink

“… The reason: The Journal’s previous survey was conducted at the height of the president’s threats to impose eye-watering tariffs on America’s biggest trading partners. He paused some of the tariffs shortly thereafter.

Whether the improved mood lasts remains to be seen. This past week, Trump told numerous trading partners—including Brazil, Canada, Mexico and the European Union—that they would face much higher tariffs starting Aug. 1.

Although economists’ outlook improved slightly from the last survey, they still are relatively downbeat—most likely because of the persistence of trade uncertainty and muted growth to date.

On average, they expect gross domestic product adjusted for inflation to grow 1% in the fourth quarter from a year earlier. That is up from an April forecast of 0.8%, but just half of what they expected in January. They see growth rebounding to 1.9% in 2026, little changed from prior surveys.…”
 
nycfan said:
🎁 —> https://www.wsj.com/economy/economi...6?st=UyCutR&reflink=desktopwebshare_permalink

“… The reason: The Journal’s previous survey was conducted at the height of the president’s threats to impose eye-watering tariffs on America’s biggest trading partners. He paused some of the tariffs shortly thereafter.

Whether the improved mood lasts remains to be seen. This past week, Trump told numerous trading partners—including Brazil, Canada, Mexico and the European Union—that they would face much higher tariffs starting Aug. 1.

Although economists’ outlook improved slightly from the last survey, they still are relatively downbeat—most likely because of the persistence of trade uncertainty and muted growth to date.

On average, they expect gross domestic product adjusted for inflation to grow 1% in the fourth quarter from a year earlier. That is up from an April forecast of 0.8%, but just half of what they expected in January. They see growth rebounding to 1.9% in 2026, little changed from prior surveys.…”
Click to expand...
Thanks. I appreciate the gift links.

I understand that the stock market can move based on emotions. I wasn't understanding why economists would, but upon reflecting, I get that the economy does, too.

I catch myself projecting my thinking processes onto society as a whole, and that is my mistake.
 
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