President Trump and Fed Chair Powell clashed over renovation costs at the Marriner S. Eccles Building, with Trump joking about firing for a $3.1 billion estimate. The budget rose to $2.5 billion from $1.9 billion due to security mandates, sparking an inspector general review. Despite disagreements, both leaders hailed the tour as constructive. Trump’s team, including FHFA head Bill Pulte, ramped up pressure on Powell, threatening Fed independence. With a Fed blackout before the next policy meeting, markets await if political drama will impact rate decisions. The spectacle shines a spotlight on transparency and accountability in federal project spending.

Read more at Quiver Quantitative: How Renovation Politics Threaten Fed Independence