Powell to Deliver Speech Tonight at 8:30 PM as Renovation Dispute Becomes Political Flashpoint

According to Jinse Finance, at 8:30 PM tonight (GMT+8), Federal Reserve Chair Jerome Powell will attend a regulatory meeting related to the comprehensive review of the capital framework for large banks and deliver opening remarks. Recently, former President Trump and several Republican lawmakers have repeatedly voiced concerns over the budget overruns for the Federal Reserve headquarters renovation project, putting pressure on Powell. As a result, his speech tonight has attracted widespread market attention. The renovation budget for the Fed building has soared from the initial $1.5 billion to $25–26 billion, far exceeding expectations. Reportedly, the project includes luxury features such as a rooftop garden and private elevators, sparking public criticism over perceived extravagance. Trump and others have seized the opportunity to accuse Powell of lacking transparency and have implied mismanagement of the Fed’s finances. The Federal Reserve has responded that the budget increase is mainly due to rising material costs and unforeseen issues during construction, and that the renovation is funded by its own income, not taxpayer money. However, the controversy has not subsided, and there are concerns that this may affect the Fed’s credibility and independence. The market generally expects that Powell will not directly address the renovation controversy tonight, but may once again emphasize the importance of central bank independence. There is also attention on whether Trump will further use this incident to apply pressure. Last week, when asked whether he would consider firing Powell, Trump replied that unless there is fraud, the likelihood is extremely low.