PANews reported on July 12 that according to Jinshi, the White House is pressuring Powell regarding the renovation of the Federal Reserve headquarters. The article by "Fed mouthpiece" Nick Timiraos points out that Federal Reserve researchers claim that, at best, the latest developments are a transparent attempt to open a new pressure front against the Federal Reserve, and at worst, a dangerous step to create legal grounds for Powell's removal.
"We are at a critical moment in the history of the Federal Reserve," said Peter Conti-Brown, a University of Pennsylvania scholar studying the Federal Reserve. "It is clear to me that the Trump administration is now using various mechanisms to create a post-hoc explanation for Powell's dismissal." Investors are paying attention because removing the Fed chairman for political reasons would break long-established norms that have supported global confidence in the dollar. "If President Trump and his allies launch such an attack on the Federal Reserve, they will bring serious instability to almost every aspect of the global economy," Conti-Brown said.
