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Yahoo
4 days ago
- Business
- Yahoo
‘You just added a third building': Powell fact checks Trump's Fed renovation as awkward hard-hat visit turns tense
President Donald Trump's attempt to shame Federal Reserve Board of Governors chair Jerome Powell over the cost of a long-running renovation to the central bank's Washington headquarters went horribly wrong on Thursday when Powell had a ready response for the president's accusations during a tour of the construction site. After viewing parts of the costly renovation, Trump and Powell stopped briefly to speak to reporters who'd traveled to the Federal Reserve headquarters with the president. Trump said the cost of the years-long project was now 'about $3.1 billion' rather than the $2.7 billion previously stated by Powell. 'So we're taking a look, and it looks like it's about 3.1 billion went up a little bit or a lot. So the 2.7 is now 3.1 it just came out,' he said reading from a piece of paper, as Powell looked on and shook his head in the negative before interjecting. The chairman replied: 'I haven't heard that from anybody' and asked if the paper Trump was reading from came from the central bank. At that point, Trump handed him the paper and continued talking while Powell pulled out his reading glasses to look. He then told the president that the higher number he was claiming included a separate project that wasn't part of the renovation at issue. 'You just added in a third building,' he said. When Trump replied that the building in question was currently 'being built,' Powell spoke up once more to disabuse the president of his misunderstanding of what he was reading. He told Trump that he was mistakenly counting long-completed renovations to a building named for William Martin Jr., who served as Fed chair from 1951–1970, as part of the renovation of the Fed's main headquarters. 'No, it's been it was built five years ago. We finished Martin five years ago,' he said. Asked by reporters if he expects more overruns on the lengthy project, Powell said the Fed is 'ready' for any but doesn't expect more. 'We have a little bit of a reserve that we may use, but no,' he said before adding that he expects to project will wrap in 2027 — a year after his term as chairman is set to end. Trump and his allies have said the $2.5 billion renovation of the Fed headquarters and a neighboring building reflects an institution run amok — a belief they had hoped to verify in an afternoon tour of the construction site. The site visit by the president is an attempt to further ratchet up pressure on Powell, whom the Republican president has relentlessly attacked for not cutting borrowing costs. Trump's attacks have put the Fed, a historically independent institution, under a harsh spotlight. Undermining its independence could reduce the Fed's ability to calm financial markets and stabilize the U.S. economy. The president has made no secret of his distaste for Powell, whom he nominated to lead the Federal Reserve in 2017, primarily because of Powell's refusal to lower interest rates, particularly in light of Trump's decision to levy tariffs. Powell has said that the central bank needs time to see what effects tariffswill have on inflation and employment before making a determination on interest rates. This has prompted Trump to call Powell a 'stupid person.' The president can do little to remove Powell. Joe Biden re-nominated Powell for another five-year term in 2021 based on his steady leadership during the 2020 COVID-19 pandemic, and his term would expire in May. Federal statute says the president can only remove Powell 'for cause.' For a time, it appeared as if Trump and his allies had found such a cause in the costly renovation of the Fed's headquarters. But Trump, a former real estate developer, appeared to soften his criticisms of the project after viewing it himself. Appearing in his element while sporting a hard hat, Trump said he would like to see the project finish. 'In many ways it's too bad it started, but it did start, and it's been under construction for a long time. Gonna be it's going to be a real long time, because it looks like it's got a long way to go,' he said. A short time later, he told reporters that he'd had a 'very good tour' and declined to repeat his earlier criticisms of the project. He did, however, give a detailed description of the project's complexity with regard to a basement being dug beneath the Washington, D.C. water table. 'I was given a very nice tour by the head of construction. And, you know, look, if you look over here, they're trying to open up the basement. When you open up a basement, first of all, it's the worst space — always. A basement is the worst space in a building, and it's also the most expensive space to build, and especially here, because you have a water line, you know, you they're going down into the water. So they have to build a reverse, what's called a reverse bathtub. The water has to be kept out. It's very expensive construction,' he said. 'There's always Monday morning quarterbacks. I don't want to be that. I want to help them get it finished. It's been going around for years, and I want to help them get it finished.' He later wrote on Truth Social that it had been a 'great honor' to tour the building. 'It's got a long way to go, would have been much better if it were never started, but it is what it is and, hopefully, it will be finished ASAP,' he said. 'The cost overruns are substantial but, on the positive side, our Country is doing very well and can afford just about anything — Even the cost of this building!' He added that he'd be 'watching' the project and hoped to add his own expertise, citing his eponymous real estate company's renovation of the historic Old Post Office building into the hotel that became a MAGA hotspot during his first term before it was sold in 2021. 'The total Construction cost was a small fraction of the Fed Building's cost, and it is many times the size. With all of that being said, let's just get it finished and, even more importantly, LOWER INTEREST RATES!' he said. Despite the president's past criticism, it appears he has backed down from his implicit threat to fire Powell due to negative reaction from markets. Last week during an Oval Office press opportunity, Trump told reporters it was 'highly unlikely' that he would upend nearly a century of precedent by attempting to sack Powell less than a day after he reportedly polled a group of Republican lawmakers on whether he should sack the central bank boss during a Tuesday night meeting in the Oval Office after the 12 House Republicans blocked a cryptocurrency bill favored by the president. With additional reporting by agencies and Washington Bureau Chief Eric Garcia
Tom's Guide
4 days ago
- Business
- Tom's Guide
OpenAI CEO Sam Altman warns AI will wipe entire job categories off the map
Sam Altman, OpenAI's CEO, has been making waves recently after a big speech in Washington. While he first went to work warning about the rise of AI scams, his speech has covered a wide range of concerns. He warned of his vision of an AI-dominated future where entire categories of jobs would be taken over, presidents follow the suggestions of ChatGPT, and AI is used for war and injustice. It's a pretty bleak image, and possibly one of the darker warnings from inside the AI world. Recently, the likes of Anthropic's CEO, Dario Amodei, warned similarly of the risk of AI taking over jobs, but phrased it as a much smaller problem than Altman. 'Some areas, again, I think just like totally, totally gone,' Said Altman, speaking at the Capital Framework for Large Banks conference at the Federal Reserve Board of Governors. 'That's a category where I just say, you know what, when you call customer support, you're on target and AI, and that's fine,' he added, talking about customer support roles. 'Now you call one of these things and AI answers. It's like a super-smart, capable person. There's no phone tree, there's no transfers. It can do everything that any customer support agent at that company could do. It does not make mistakes. It's very quick. You call once, the thing just happens, it's done.' Altman went on to highlight the same issue in healthcare, suggesting AI's diagnostic capabilities were better than any human. He did share that he believed AI could never fully replace healthcare staff. Get instant access to breaking news, the hottest reviews, great deals and helpful tips. In his time in Washington, Altman also addressed concerns over the use of AI by hostile nations, and the use of AI by those who would use it for malicious circumstances. We previously covered that, in the same talks, Altman addressed his concerns for the rise in AI voice creators. As the technology improves, the technology could be used in scams or to get around voice–activated banking services. OpenAI is gearing up to be ahead of the AI movement in terms of policy. The company has confirmed that it will soon open its first Washington, DC office with a small workforce. This would be used to host policymakers and provide AI training to those making decisions on the technology. Follow Tom's Guide on Google News to get our up-to-date news, how-tos, and reviews in your feeds. Make sure to click the Follow button.
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Business Standard
11-07-2025
- Business
- Business Standard
White House ups pressure on Fed chair by targeting central bank renovation
On Thursday, Trump's top budget adviser, sent a letter to Federal Reserve chair saying the president is troubled that plans may have violated govt building rules with an ostentatious overhaul AP Washington President Donald Trump is escalating his pressure campaign to get the Federal Reserve chairman to either lower interest rates or quit his post by targeting the expensive renovation at the central bank's headquarters. The latest step came Thursday when Russ Vought, Trump's top budget adviser, sent a letter to Federal Reserve Chairman Jerome Powell saying the president is extremely troubled that plans may have violated government building rules with an ostentatious overhaul. Trump also named two close aides to an obscure commission who plan to review the Federal Reserve building plans another avenue to increase scrutiny on Powell, whose eight-year term formally ends next May. This follows a near-daily drumbeat of criticism that Trump has leveled at Powell, whom he has disparaged as a very stupid person who should resign immediately. It's an unprecedented attempt to reshape the Federal Reserve's traditional role as an autonomous arbiter of US monetary policy. If successful in getting Powell to leave or getting interest rates lowered, Trump will have expanded his influence to yet another corner of American government that was once seen as beyond the reach of political pressure. But he also risks jeopardizing the independence that has made the central bank a foundational player in the US economy. Powell has sought to avoid politics and refrains from responding directly to the president. Fed officials did not respond to an email seeking a response to the letter, though Powell has previously said that some parts of the renovation plans have changed. Powell has so far resisted Trump's pressure to cut rates, largely out of concern that Trump's tariff plans could increase costs for American consumers. If rates are lowered too aggressively, it could lead to a resurgence of inflation. But Trump insists that inflation is no longer a problem, and a rate cut would help make mortgages, auto loans and other forms of consumer debt cheaper. Trump has also said it would allow the US government to finance its debt more cheaply, a pressing concern as legislation signed by the president is poised to increase the federal deficit by extending tax cuts. LOWER THE RATE!!! Trump wrote on social media on Thursday. However, there's no guarantee that financial markets will reduce rates on government debt even if the Fed bows to Trump's wishes. Such a situation could lead to higher interest costs for consumers a reminder of how monetary missteps may backfire. Powell was nominated to the Federal Reserve Board of Governors by President Barack Obama, then made chairman by Trump during his first term. But in his second term, Trump turned Powell into one of his primary antagonists. Trump has said that he wouldn't directly oust Powell. I don't know why it would be so bad, but I'm not going to fire him, he said last month. The Supreme Court said in May that it could block such a step. However, Trump's allies have found other ways to make Powell uncomfortable. Bill Pulte, the Trump-appointed director of the Federal Housing Finance Agency, also accused Powell of lying to Congress about the renovations. "I am asking Congress to investigate Chairman Jerome Powell, his political bias, and his deceptive Senate testimony, which is enough to be removed for cause," he said last week. Pulte said the situation stinks to high heaven. Trump's naming of James Blair, a deputy chief of staff, and Will Scharf, the staff secretary who furnishes the president with executive orders for his signature, to the National Capital Planning Commission also potentially ratchets up the pressure on Powell. Blair said he would be requesting a review of all previous and current building plans and suggested that Powell wasn't honest while testifying to Congress about the renovations last month. If Powell isn't truthful, Blair wrote on social media, how else is the American Public to maintain confidence that its monetary policy manager is acting in their interests? Vought, in his own letter, called the initial renovation plans featuring rooftop terrace gardens, VIP dining rooms and premium marble an ostentatious overhaul. Vought also suggested that Powell misled Congress by saying the headquarters had never had a serious renovation, saying that an update to its roof and building systems that was completed in 2003 counts as a comprehensive renovation. Powell said in Senate testimony last month that some of the elements in the 2021 plan, such as the dining rooms and rooftop terraces, are no longer part of the project for the 90-year-old Marriner S. Eccles Building. The debate over the renovation could set up a legal battle between the White House and the Fed, which under the law is allowed to use its own judgment to establish suitable and adequate quarters for its operations. Sung Won Sohn, a finance and economics professor at Loyola-Marymount University, said, It's good that the central bank budget is coming under review and scrutiny. However, he warned against using such issues to challenge the Fed's independence. If that's compromised, he said, it's bad for the economy, that's bad for inflation expectations and therefore long term inflation.
New York Post
30-06-2025
- Business
- New York Post
Trump ramps up pressure on Fed Chair Powell to cut rates in handwritten note: ‘You have cost the USA a fortune'
President Trump on Monday lobbed another broadside at Fed Chair Jerome Powell in an invective-laced note scrawled on a list of central bank interest rates around the world — accusing him of costing 'the USA a fortune.' 'Jerome, you are, as usual, 'too late.' You have cost the USA a fortune and continue to do so. You should lower the rate, by a lot! Hundreds of billions of dollars being lost,' Trump wrote in his trademark large, all-capital style that included his signature. Trump also wrote 'should be here' next to the column that ranked interest rates from lowest to highest by nation — and scribbled a bracket between Japan's 0.5% and Denmark's 1.75%, according to the missive brandished by press secretary Karoline Leavitt during a White House briefing. Advertisement 4 White House press secretary Karoline Leavitt displays a note from President Trump during a briefing on Monday. AP He also posted the image to his Truth Social account, with further commentary saying that being a central banker in the US was 'one of the easiest, yet most prestigious jobs in America, and they have FAILED…We should be paying 1% interest, or better!' Trump said that Powell and the rest of the Federal Reserve Board of Governors should be 'ashamed of themselves.' Advertisement Policymakers have kept the Fed rate at between 4.25% and 4.5% since December as inflation remains above its 2% target. The inaction has infuriated Trump, who has walked back threats to fire Powell before his term expires in 2026. Trump cannot fire Powell over a policy dispute, but last week urged him to resign. Meanwhile, Treasury Secretary Scott Bessent — who has been named as a possible successor to Powell — began mapping out the likely plan for naming the next Fed Chair. On Monday, he pointed to a more conventional handover of power at the Fed instead of attempts to influence monetary policy through early appointment of a 'shadow chair' or other methods. Advertisement Fed Governor Adriana Kugler's term on the board expires on Jan. 31, 2026, providing an option for Trump to name a governor for a full 14-year term who could later be promoted to chair. 'There's a seat opening up, a 14-year seat opening up in January. So we've given thought to the idea that perhaps that person would go on to become the chair when Jay Powell leaves in May, or we could appoint the new chair in May,' Bessent said on Bloomberg TV. 4 President Trump looks on as Jerome Powell, his nominee to lead the Fed at the time, speaks at the White House in 2017. REUTERS 'Unfortunately, that's just a two-year seat.' Advertisement Powell's term as chair ends next May, and his own seat on the board only extends to Jan. 31, 2028. While Powell is not required to leave the Fed Board after his term as chairman expires, that has been custom. His seat and Kugler's are the only board spots that will expire during Trump's term. Bessent confirmed that there are current board members in the running to replace Powell. 'Obviously there are people who are currently at the Fed who are under consideration. So why would there be confusion, if you add another candidate in January,' he said. Fed Governor Christopher Waller, appointed by Trump during the president's first term, is reported to be among those Trump is considering for the job. Waller recently has said he would like to resume interest rate cuts as soon as the Fed's next meeting in late July. Others said to be in the running include Trump economic adviser Kevin Hassett and former Fed Governor Kevin Warsh. Trump on Friday said he wouldn't appoint anyone to lead the central bank who does not back immediate interest rate cuts. 4 A note written by President Trump to Fed Chair Jerome Powell. Getty Images Advertisement A growing number of Fed officials, though still in the minority, have joined the call for interest rate cuts as soon as policymakers' next meeting. On Monday, Goldman Sachs analysts moved up their projection for the next interest rate cut to September, citing 'a bit smaller' impact on inflation from Trump's tariffs than initially expected. 'While it is far from clear, we think the odds of a cut in September are somewhat above 50% because we see several routes to get there – underwhelming tariff effects, larger disinflationary offsets, and either genuine labor market softness or a scare from month-to-month volatility,' the bank's economics team, led by chief economist Jan Hatzius, wrote in a note. 'We suspect that the Fed leadership shares our view that tariffs will only have a one-time price level effect.' Advertisement 4 Federal Reserve Chairman Jerome Powell listens during an open meeting of the Fed Board of Governors last week. AP Goldman expects three quarter-point cuts this year. The bank also lowered its 'terminal rate forecast' to 3% to 3.25%, down from 3.5% to 3.75%. The bank ruled out a cut following July meeting, 'barring much weaker-than-expected employment data this week.' While the labor market is still relatively 'healthy,' it has grown harder to find a job 'and both residual seasonality and immigration policy changes pose near-term downside risk to payrolls,' the economic team wrote. Advertisement The Fed receives new jobs data on Thursday, covering the month of June, which will indicate if the labor market is beginning to sputter, a development that could also add to the case for rate cuts sooner rather than later. New inflation data is released next week. July 9 is also top of mind for the Fed: That's the day the current suspension of some of Trump's tariffs expires, and it remains unclear whether import taxes will skyrocket or Trump's program will be delayed again pending negotiations. Federal Reserve Bank of Atlanta President Raphael Bostic repeated on Monday that he still sees the central bank cutting its interest rate target just once this year, while suggesting there's no urgency to act given the level of uncertainty. Advertisement 'I think we actually have some luxury to be patient because labor markets are actually quite solid,' Bostic said in an event hosted by Market News International. 'I think there is actually more pricing to come, and it is more a question of time, of when and not if…This is still going to take some time before we'll sort of know the answer to those sorts of things.' With Post wires
Yahoo
22-05-2025
- Business
- Yahoo
Here's How Kevin O'Leary Is Investing During Tariff Turbulence: Should You Do the Same?
Keeping up with tariffs has been a little bit like watching a tennis match — they go from one side to another almost daily. It can be challenging for an investor to keep up. At times like this, it can pay to listen to an experienced investor, like 'Shark Tank's' Kevin O'Leary, and follow their lead. Be Aware: Find Out: Here's how O'Leary in investing during the tariff turbulence and whether you should do the same. One of the biggest risks of the tariffs the Trump administration has proposed is that they will raise prices, which could lead to a recession. Federal Reserve Board of Governors Chairman Jerome Powell recently said while the Fed does not predict recessions, there is typically a one in four chance of recessions within 12 months at any given time. O'Leary gave his insight on the likelihood of a recession in a recent interview with CNN's John Berman. 'Let me just say that we've been talking about recession now for four years in a row, you may recall. Forecasters of recessions have been wrong for four years straight. … We're not in a recession right now.' O'Leary added that he is not currently investing as he would in a recession, since there is no recession at the moment. Read Next: O'Leary explained that, while tariffs make for 'a difficult, tricky situation,' market corrections are commonplace. 'The markets correct 20% all the time, almost every 18 months. … This is nothing new for the S&P 500,' he said, adding that these corrections are often buying opportunities. 'It's a value deal.' Professional investors commonly recommend 'buying the dip,' or investing during a downturn, as there are bargains to be had when stock prices fall. The volatility in the markets is a byproduct of the administration's tariff policies, according to O'Leary. 'There's a lot of volatility and that's what you get when you take these kinds of actions,' he said. 'No administration has ever taken on 60 trade negotiations simultaneously, let alone China on top of that.' O'Leary is well known for his long-term approach to investing, and nothing in his comments about tariffs or recession would indicate he's deviating from that. In his book, 'Cold Hard Truth on Men, Women, and Money,' he recommends the individual investor pare down spending to invest as much as possible into a 401(k) or other retirement account. By looking at your income and expenses over a 90-day period, you can see how much money you have to invest. If you want to invest more, you need to trim back your expenses. O'Leary recommends sticking to this approach and not worrying about a possible future recession. 'I would argue right now that people that count out the American economy are constantly wrong all the time.' Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates 6 Big Shakeups Coming to Social Security in 2025 Sources CNN, 'Harvard Sues Trump Admin Over Threats to Cut Funding; U.S. Markets Look to Rebound After Selloff; Nearly Half of U.S. Teens Say Social Media Hurts Their Generation.' YouTube, CNBC Television, 'Powell on the possibility of a recession.' This article originally appeared on Here's How Kevin O'Leary Is Investing During Tariff Turbulence: Should You Do the Same?
