Review of Federal Reserve's $2.5 Billion Renovation

The Trump administration is set to inspect the Federal Reserve headquarters this week, as part of a review into the building's extensive $2.5 billion renovation project. This move, reported by Semafor and confirmed by White House Deputy Chief of Staff James Blair, signals a deepening interest in the Fed's financial undertakings.

Political Undercurrents and Powell's Position

Senator Tim Scott, Chairman of the Senate Banking, Housing, and Urban Affairs Committee, will join the delegation. The inspection is seen by some as a potential leverage point for President Trump, who has expressed dissatisfaction with Fed Chair Jerome Powell's leadership, particularly over interest rate disagreements. Despite rumors of Powell's dismissal, Trump has publicly stated such an action is 'highly unlikely.' Powell's term continues until May 2026.

Background of the Tension

The relationship between Trump and Powell has been strained, primarily due to differing views on monetary policy. This inspection could either alleviate or exacerbate those tensions, depending on the findings of the review.