By Howard Schneider WASHINGTON (Reuters) -Federal Reserve Chair Jerome Powell has asked the U.S. central bank's inspector general to review the costs involved in the renovation of its historic headquarters in Washington,

Treasury Secretary Scott Bessent told Bloomberg on Tuesday a “formal process” has been launched to find Federal Reserve Chair Jerome Powell’s successor, following months of pressure from President Donald Trump to have Powell step down from his role at the agency.

The most recent criticisms against Fed chair Jerome Powell come after President Donald Trump continues to demand lower interest rates.

If President Trump gets his way and removes Jerome Powell as chairman of the U.S. Federal Reserve, the market reaction would be swift and brutal, Deutsche Bank’s George Saravelos argues. It could collapse the currency and bond markets,

Potential removal of Fed Chair Jerome Powell could disrupt markets, spike inflation expectations, and impact the USD and bonds.

President Donald Trump has signaled he’s already looking to replace Federal Reserve Chair Jerome Powell far earlier than usual. Here’s how a so-called ‘shadow’ Fed would work, and why it could cause problems for markets.

The Federal Reserve has requested that its inspector general review a $2.5 billion headquarters expansion project following sharp criticism from the Trump administration. According to CNBC, Fed Chair Jerome Powell requested the review amid accusations of “fiscal mismanagement” and cost overruns tied to renovations.

Powell has been repeatedly criticized by the president over the U.S. central bank’s resistance to cut interest rates despite Trump’s demands to do so. In an interview with ABC’s “This Week,” Hassett was asked if the president has the authority to order Powell’s removal.