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Federal Reserve quietly responds to Trump administration attacks over renovation

1. Fed chair Powell faces criticism from Trump administration over renovation costs. 2. Renovation project estimated to cost $2.5 billion, with $700 million over budget. 3. Powell pushes back against claims of mismanagement and political pressure. 4. Fed's website clarifies project details, denying extravagant features. 5. Investigation into Fed’s renovations suggested by Trump's OMB Director Vought.

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FAQ

Why Bearish?

Ongoing scrutiny of the Fed can increase market uncertainty. Historically, political tensions with the Fed have precedents for negative market reactions.

How important is it?

Political attacks on the Fed can influence interest rate expectations, impacting S&P.

Why Short Term?

Immediate market responses arise from political tensions. Past instances show markets react swiftly to Fed-related controversies.

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