Fed Chair Powell to Deliver Public Speech Tonight, Market Focuses on Response to Trump Pressure

According to reports, Federal Reserve Chair Powell will attend a banking regulation-related meeting and deliver opening remarks at 20:30 Beijing time tonight. Recently, Trump and Republican lawmakers have been pressuring Powell regarding the overspending on the renovation of the Fed headquarters, making his speech tonight widely anticipated by traders and investors. It is expected that Powell will not directly address the issue in his speech tonight, but may emphasize the importance of Fed independence. The renovation budget for the Fed headquarters has surged from $1.5 billion to $2.5-2.6 billion, far exceeding expectations, with rumors of luxury facilities such as a rooftop garden and private elevator, sparking public and political scrutiny over extravagance. Trump and others have criticized Powell and questioned his transparency over this issue. The Fed responded that the overspending was due to rising material costs and unexpected issues, funded by its own income rather than taxpayers, but the controversy remains unresolved, potentially affecting its reputation and independence. Market speculates that Trump may use this as a reason to dismiss Powell. Last week, when asked if he would fire Powell, Trump stated that the possibility is very low unless there is fraud involved.

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