Latest news with #costoverruns
Yahoo
4 days ago
- Business
- Yahoo
Trump's rare Federal Reserve visit raises 2 questions
President Trump is headed to the Federal Reserve for a rare visit on Thursday, frustrated by renovation cost overruns and continuing his public criticism of Chair Jerome Powell. Yahoo Finance Washington Correspondent Ben Werschkul explains what Trump's presence could mean for the future of the project and Powell's remaining time in office. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. The president's scheduled to visit the Fed this afternoon. We know Ben, uh, the president not happy with cost overruns at that site, not happy with J. Powell in general. What, what do we expect today? Yeah, so this is a very unusual visit. The presidents usually don't go to the Federal Reserve. They don't Trump has never been there, according to any records we can find. Um, and obviously, as you mentioned, we're going to get a lot of Powell bashing from Trump today. We've, we've been here and we hear that on a daily basis from him. The sort of what, what to expect in terms of a shift here, other than the images we're going to see, which I think will be striking of, of this tour here are, are kind of two levels for markets. The top one is whether Trump is willing to shift his, his rhetoric on, on whether Jerome Powell has, has uh, has committed fraud based on these renovations, which have increased in costs. But, but the Federal Reserve has said that that's, this is sort of normal. This is a, a complicated project. Trump has said he's, he's signaling he's not going to fire Powell unless he has to leave for fraud, was the caveat he left. The question will be, as he comes out of this, out of this construction site, whether that rhetoric has changed. That would be a major change in terms of whether he's willing to entertain the, the legally questionable, um, effort to, to oust Powell. The second question here is, is really important for the Federal Reserve, less in terms of Powell staying in office or not, but is just sort of how much more complicated they're going to make this renovation. This is a complicated project. Um, though some of the aides expected to be with Trump are members of the National Capital Planning Commission, who are close allies to Trump, who are talking about whether they need Powell needs to get reapproval for this project. That would, that would be a huge headache. It would stop the project potentially and force reapproval and kind of let the remaining nine or 10 months of Powell's term be occupied by this. So it's kind of on those two levels, what we're watching for. But it's going to be a kind of wild scene with, with Trump and a, and a whole parade of aides there at the, they're at the Federal Reserve in about an hour's time. Related Videos Trump Says U.S. Has '50-50 Chance' of Reaching Trade Deal With EU Trump Is on the Mind of the FOMC, Goldman's Kaplan Says Fed's Next Move: BlackRock's Rogal, Wolfe Research's Roth Trump's trade remarks: 3 takeaways ahead of China negotiations Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
5 days ago
- Business
- Bloomberg
Bloomberg Daybreak: Trump Tariff Rates
1) US President Donald Trump suggested that he would not go below 15% as he sets so-called reciprocal tariff rates ahead of an Aug. 1 deadline, an indication that the floor for the increased levies was rising. 2) Donald Trump will personally visit the Federal Reserve Thursday to tour a construction site he's criticized for cost overruns amid his escalating attacks on Fed Chair Jerome Powell for not cutting rates. The White House announced the visit in the release of the president's daily public schedule. The visit is planned for 4 p.m. reading simply, 'THE PRESIDENT visits The Federal Reserve,' without further details. 3) Elon Musk warned of difficult times ahead for Tesla Inc. after one of the automaker's worst quarters in over a decade. Tesla will be a transition period for the next year or more, losing electric vehicle incentives in the US and needing time to roll out autonomous vehicles, the chief executive officer said.
The Independent
6 days ago
- Politics
- The Independent
Army reveals the real cost of Trump's birthday parade in Washington
The controversial Army parade through Washington, D.C., in June that coincided with Donald Trump 's birthday cost the service branch $30 million, it announced on Wednesday. 'I can confirm the total for the Army festival and parade cost approximately $30 million,' an Army spokesperson told The Hill. The event, marking the 250th anniversary of the Army, was projected to cost between $25 million and $45 million, not accounting for the cost of police and street repairs tied to the event In addition to cost overruns, some worried the event would damage Washington's infrastructure, though an Army spokesperson said in late June the procession of military hardware had only been shown to damage a single curb, which the Army planned to repair. The parade featured columns of marching troops, fireworks, and antique and modern military hardware like tanks rolling through Washington. The parade may have exceeded expectations on cost and safety, but the event was a controversial one, nonetheless. Critics argued that the sight of the military marching through the capital, at the same time the Trump administration was using the military to quell protests against his administration in Los Angeles, had authoritarian undertones. 'This is the kind of thing that Stalin would have done. This is the kind of thing North Korea does. It sickens me that we're putting on this display just for one man's ego,' Donna Stork, 73, of Hagerstown, Maryland, told The Independent as she watched the event. 'I have no problems with the Army having a celebration,' she added. 'What I do have a problem with is the implication that this is more about Trump and military might than it is about the 250th anniversary of people who fought and died for our country.' Others, including some veterans, praised the event. 'I retired from the Army 30 years ago and I came to honor all the people that came before me, all the friends that I've lost,' Van Beal, 70, who first joined the Army in 1978, told The Independent. A June poll found that 60 percent of respondents thought the event was not a good use of government funds. The parade took place the same day as 'No Kings' protests against the administration, which drew between 4 and 5 million people, according to estimates. The Trump administration claimed 250,000 people attended the parade, though outside estimates suggest fewer than 200,000 were in Washington for the event.
Daily Mail
6 days ago
- Business
- Daily Mail
Anna Paulina Luna unleashes hell on Fox News host for his 'wild take' on Jerome Powell
Republican Rep. Anna Paulina Luna skewered a Fox Business host and demanded that he retract comments criticizing her criminal referral for Federal Reserve Chairman Jerome Powell. The Florida Republican recommended criminal charges against Powell to the Department of Justice earlier this week alleging he lied to Congress. The effort made good on a promise she made the week before to hold him accountable for cost overruns in the Federal Reserve's Washington HQ remodel. The plan, originally approved by the Federal Reserve's board in 2017, has ballooned in cost from around 1.9 billion to $2.5 billion, prompting outrage from critics. But Fox Business host Stuart Varney, a mainstay on the channel, called out Luna this week for setting a new precedent in recommending charges against Powell over a 'monetary policy.' 'Anna Paulina Luna ... she's taken the fight the Fed fight to a new level,' Varney said on his show. 'She's referred power to the Justice Department. She accuses him of lying to Congress about the expensive renovations at the Fed's headquarters.' 'Lying to Congress is a criminal offense if you have a dispute of a monetary policy, and that's what this is, and you can't change your opponent's mind, should you then charge him with corruption?' Varney asked. 'It seems like we're stepping over a line, and it reminds me of the lawfare harassment of candidate Trump.' Catching wind of Varney's critique, Luna unleashed on the TV host. 'Stuart Varney should take the time to read my criminal referral for Jerome Powell before making uninformed statements on live television,' she posted on X Wednesday. 'Apparently, Varney is telepathic and knows how I think — and also thinks $700 million in mismanaged funds is no big deal? Wild take. You should retract your statement.' Luna claims that Powell perjured himself twice while testifying to Congress about the remodel. Perjury comes with a potential for five years in jail and fines. She accused the chairman of lying about the Federal Reserve's luxurious amenities in the Marriner S. Eccles and misreporting the progress of the renovations. Luna is accusing Powell of false claims while testifying under oath during a Senate committee hearing. Office of Management and Budget (OMB) Director Russell Vought has sent a letter to Powell asking about his congressional testimony on the renovation project. The letter is seen as a pretext to fire Powell for 'cause' over the matter. Vought has also accused the chairman of overseeing an 'ostentatious' remodeling effort. Powell has defended the renovations as necessary regardless of the cost overruns. 'Both buildings were in need of significant structural repairs and other updates to make the buildings safe, healthy, and effective places to work, including the removal of asbestos and lead contamination, complete replacement of antiquated systems such as electrical, plumbing, heating, ventilation, and air conditioning, as well as fire detection and suppression systems,' Powell wrote back to Vought. After a recent meeting with the president last week, Luna predicted on X that Trump would soon fire Powell, though that has not happened yet. Trump has for years lashed out at the chairman for his handling of the U.S. central bank, repeatedly slamming the Fed Chair Powell for not lowering interest rates and bestowing him with the nickname 'Too Late' Powell. The chairman has taken a wait and see approach to interest rates, arguing that it is better for consumers to keep borrowing costs stable are global markets digest Trump's tariff plan. The president has vacillated on firing Powell, a move that no president has taken before, but he may end up waiting out his term, which expires mid-2026.
Yahoo
19-07-2025
- Business
- Yahoo
Trump officials using building renovation costs to go after Fed chair, WSJ says
This story was originally published on Facilities Dive. To receive daily news and insights, subscribe to our free daily Facilities Dive newsletter. Cost overruns incurred by the Federal Reserve on the renovation of its headquarters and two other buildings it owns in Washington, D.C., are the kind of thing building owners frequently deal with when undertaking complex construction projects but Trump administration officials are giving them a high-profile examination, The Wall Street Journal reports. The agency in 2019 said it was spending about $1.9 billion on the renovations but that cost ballooned almost 35% to $2.6 billion after the agency switched gears on aspects of the sprawling project, the Journal said. Among other things, the agency added high-cost below-ground square footage to its office building adjacent to its historic headquarters to offset space it lost after the U.S. Commission of Fine Arts asked it to nix plans for a five-story tower addition. That commission and the National Capital Planning Commission share jurisdiction for reviewing building plans in Washington. Once construction began, the general contractor came across unexpected asbestos in the building, toxic soil contamination and a higher-than-expected water table, the Journal said. Inflation was a problem, too. Budget documents released at the end of last year showed 'significant increases' in the cost of steel, cement, wood and other materials that 'far exceed standard cost escalations,' the Journal reported. There was also a costly disruption when the agency fired the original architectural and engineering firm it had hired to work on one of the buildings after the Fed's inspector general called out the firm's performance. Academics and others are concerned the Trump administration is using the cost overruns to shine an unflattering spotlight on the Fed chair, Jerome Powell, whom President Trump has said he'd like to replace for his unwillingness to lower interest rates. Powell was appointed by Trump in his first term and is slated to serve until his appointment as chair ends in May 2026. 'We are in a high-stakes moment in the history of the Federal Reserve,' Peter Conti-Brown, a Fed scholar at the University of Pennsylvania, said in a July 11 Journal report. 'It seems clear to me that the Trump administration, using various mechanisms, [has] now cooked up a post-hoc explanation for Powell's removal.' The White House budget director Russ Vought blasted the overruns in a social media post earlier this month, calling them double the cost for renovating an ordinary historic federal building, at $1,923 per square foot. He reproduced a letter he had sent Powell questioning the veracity of testimony the Fed chief had given earlier in June in a Senate hearing. Among other things, Vought questioned why the Fed chief didn't notify the National Capital Planning Commission when it decided to replace the five-story addition with the below-ground space. Powell responded with a letter saying the commission had no financial oversight over the project so the Fed wasn't required to give it notice. A Fed official later told the Journal the Fed's external building manager hadn't advised the agency that any of the planned changes needed to be submitted to the commission. At the time of the exchange between Vought and Powell, the administration appointed to the planning commission several Trump advisors, including White House Deputy Chief of Staff Michael James Blair, who in mid-July likened Powell to Marie Antoinette on social media for what he called design excesses in its plans. 'Let them eat basis points,' Blair posted. 'At a time when the Fed is running an operating deficit, maintains high interest rates, and is receiving significant public scrutiny, one has to wonder whether the so-called 'Taj Mahal near the National Mall' project is in the best interests of the board & the public it serves,' Blair said in another post. The excesses Blair and other critics were looking at included a 'high-gloss finish' on the five-story addition that was later abandoned, according to the Journal. Looked at in its most negative light, the public grilling and criticism could be a 'dangerous step toward manufacturing a legal justification for Powell's removal,' said the Journal, paraphrasing Conti-Brown. Lawmakers have warned against firing the Fed chair. 'The consequences of firing a Fed chair … will be to undermine the credibility of the United States going forward,' Sen. Thom Tillis (R-N.C.) said on the Senate floor earlier this month. 'If it happens, you are going to see a pretty immediate response, and we've got to avoid that.' The U.S. Supreme Court in May indicated in a ruling the president can only fire the Fed chair for cause – typically dereliction of duty or malfeasance in office, according to academics – and Trump has said, although he's unhappy with Powell's performance, he's unlikely to seek his dismissal. The ruling concerned the president's authority to fire other officials but singled out the Fed chair as an exception. 'The Federal Reserve is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States,' the ruling said. But given their high profile criticism directed at the renovation project, Trump officials appear to be trying other means to coax Powell out, according to the Journal. 'The building brouhaha echoes an effort by President Richard Nixon ahead of the 1972 election to put pressure on his Fed chair, Arthur Burns, to keep interest rates low by planting a false story in the press that Burns was seeking a pay raise at the same time he was proposing national wage and price controls,' the Journal said. Recommended Reading Trump orders GSA to advance 'beautiful' federal buildings Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
