News

BlockBeats News, July 22 — At 8:30 PM Beijing time tonight, Federal Reserve Chair Jerome Powell will attend a conference on banking regulation and deliver the opening remarks. Due to recent pressure from former President Trump and Republican lawmakers regarding cost overruns in the Federal Reserve headquarters renovation project, Powell’s speech tonight is drawing significant attention from traders and investors. It is expected that Powell will not directly address the issue in his remarks, but may once again emphasize the importance of the Fed’s independence. The renovation budget for the Federal Reserve headquarters has surged from $1.5 billion to between $2.5 and $2.6 billion, far exceeding expectations. Rumors of luxury features such as a rooftop garden and private elevators have sparked public and political criticism over alleged extravagance. Trump and others have seized the opportunity to criticize Powell and question the Fed’s transparency. The Federal Reserve has responded that the overruns are due to rising material costs and unforeseen issues, and that the funds come from its own income rather than taxpayers. However, the controversy has not subsided and may impact the Fed’s reputation and independence. The market speculates that Trump may use this issue to seek Powell’s dismissal. When asked last week whether he would fire Powell, Trump said the likelihood was extremely low unless fraud was involved.