Headquarters Renovation Global Central Bank Heads Unite to Stand Behind Powell Over Threat of Politicization of the Fed The heads of major central banks from across the world have come together to show their support for the current head of the Federal Reserve Jerome Powell as a result of the possible politicization of the Fed. This move comes against the background of an increasing probe of the $2.5 billion renovation of the Fed headquarters located in Washington.
Central Banks Unite in Support of Powell The central banks of 11 major countries, including the European Central Bank, the Bank of England, as well as the Bank of Canada, have extended their support to Powell in a joint statement, in which they asserted that independence is highly necessary for them in terms of price stability, financial resilience, as well as public confidence. They called Powell his respected colleague, who has worked with an evident focus on his mandate.
Probe on Fed's HQ Overhaulf Investigation, which raises concerns about the Fed's independence, begins with the cost overrun associated with the several-year HQ makeover by the Fed. The overhaul has gone from a projected cost of about $1.8 billion to a possible $2.5 billion, a $700-million overrun. This investigation is seen as aform of retribution by President Donald Trump for keeping rates above what he wants by Fed Chairman Jerome Powell.
Market Reaction: The market responded cautiously yet promptly with the dollar falling, American stock futures declining, and Treasury futures rising as the market analyzed the consequences of the mounting pressure on the Fed. According to market trends reported recently, the Nasdaq was down 0.16% at 25,720.20 , with the S&P 500 down 0.14% at 6,958.60 .
What's Next? As the investigation unfolds, there have been concerns regarding the independence of the Fed and what it means for monetary policy, although Powell's Fed-term ends on May 15, 2026, and President Trump has already said that he won't reappoint Powell.
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