In prepared remarks for a speech at the Exchequer Club, Senator Elizabeth Warren, Ranking Member of the U.S. Senate Committee on Banking, Housing and Urban Affairs, accused President Trump of trying to manufacture a pretext to remove Federal Reserve Chair Jerome Powell by focusing on the central bank’s spending on building renovations. Warren argued that if the administration’s aim were to lower interest rates it should address tariff policy rather than threaten the Federal Reserve’s leadership. While reaffirming her long-standing support for greater transparency and accountability at the Fed, she said the renovation issue was not a credible basis for firing the Chair and warned that markets would “tank” if Powell were removed.
U.S. Senate Committee on Banking, Housing and Urban Affairs 2025-07-16
U.S. Senate Committee on Banking, Housing and Urban Affairs Ranking Member Warren says Trump is using Fed renovation scrutiny as a pretext to fire Chair Powell
Senator Elizabeth Warren criticized President Trump for allegedly seeking a pretext to remove Federal Reserve Chair Jerome Powell by focusing on the central bank’s renovation spending. Warren suggested addressing tariff policy, not threats to the Fed's leadership, to lower interest rates. She reaffirmed her support for Fed transparency and accountability, warning that Powell's removal could destabilize markets.