Powell will give a speech tonight at 20:30, and the renovation controversy has become a political focus

ChainCatcher news, tonight at 20:30 Beijing time, Federal Reserve Chairman Jerome Powell will attend a regulatory meeting related to the comprehensive review of the capital framework of major banks and deliver opening remarks.

Due to recent frequent statements from Trump and several Republican lawmakers regarding the budget overruns of the Federal Reserve's headquarters renovation project, pressure has been exerted on Powell, making his speech tonight a significant focus for the market.

The renovation budget for the Federal Reserve building has soared from the initial $1.5 billion to $25 to $26 billion, far exceeding expectations. It is reported that the project includes luxury facilities such as a rooftop garden and private elevators, raising external concerns about extravagance. Trump and others have seized the opportunity to criticize Powell for lack of transparency and to imply mismanagement of the Federal Reserve's finances.

In response, the Federal Reserve stated that the budget increase is mainly due to rising material costs and unexpected problems during the project, and that the renovation funds come from its own revenue, not taxpayer money. However, the controversy has not yet subsided, and there are concerns that this could affect the Federal Reserve’s credibility and independence.

The market generally expects Powell to avoid directly addressing the renovation controversy tonight but to possibly reiterate the importance of central bank independence. There is also attention on whether Trump will further exert pressure through this incident. Last week, when asked if he was considering firing Powell, Trump responded that the likelihood is very low unless some fraudulent activity occurred.