Fed chair taps inspector general to review HQ renovation amid escalating Trump fight

US Economic Policy & Federal Reserve - The White House is attempting to build a legal case to fire Federal Reserve Chair Jerome Powell for cause, citing mismanagement of a $2500 million renovation project at the central bank's headquarters [1] - The statute governing the Fed states that the Fed chair can be fired for cause, not at the president's discretion [1] - Trump's economic agenda has made it difficult for the Fed to lower interest rates, leading to political problems [1][6] - Replacing Powell with someone who lowers interest rates by 300 basis points could create a huge financial bubble [1] - An independent central bank is better for the long-term economy, as political pressure can lead to runaway inflation [1] Tariffs & Inflation - The market believes that Trump will chicken out on imposing tariffs [7][8][9] - Tariffs are attacks on the American people, increasing costs at Walmart, Target, and other places that rely on imported goods [10] - New tariffs on Brazil, including a 50% tariff, will raise prices on fish, meat, coffee, and machinery [4] - The case for cutting rates is non-existent, with core inflation projected at 3% year-over-year, above the Fed's 2% target [3] National Debt - The big beautiful bill (tax cut) is going to add $4 trillion to the debt, leading to more interest expense and budget deficits [12]