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Trump Targets Fed Chair Powell Over Renovation Costs

  In a dramatic escalation of his long-standing feud with Federal Reserve Chair Jerome Powell, former President Donald Trump has signaled a potential path to remove Powell from office—citing alleged mismanagement of a $2.5 billion renovation project at the Fed’s Washington headquarters. The renovation, which includes upgrades to aging infrastructure and removal of hazardous materials like asbestos, has ballooned in cost over the years. Trump and his allies claim the project includes extravagant features such as rooftop gardens, VIP dining rooms, and premium marble—claims Powell has publicly denied. The Fed insists the renovations are necessary and cost-effective in the long term, consolidating staff and reducing rental expenses. While the Supreme Court has affirmed that a president cannot dismiss the Fed chair over policy disagreements, Trump may be attempting to build a case for removal “for cause,” alleging Powell misled Congress about the renovation’s scope and budget. Criti...

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Oil prices slump to six-month low amid weak demand and oversupply

 


Oil prices have fallen to their lowest level since June, as concerns about weak demand and oversupply weigh on the market. The spread of the Omicron variant of the coronavirus has led to new travel restrictions and lower economic growth expectations, reducing the outlook for oil consumption. At the same time, oil producers have increased their output, creating a glut of supply that exceeds demand.

According to the U.S. Energy Information Administration (EIA), U.S. crude oil inventories rose by 3.6 million barrels last week, while gasoline stocks jumped by 5.7 million barrels, indicating sluggish demand for fuel. The EIA also lowered its forecast for global oil demand growth in 2023 by 100,000 barrels per day (bpd) to 4.1 million bpd.

The International Energy Agency (IEA) echoed the bearish sentiment, saying that the Omicron variant is expected to temporarily slow the recovery in oil demand that is underway. The IEA also cut its demand projections for 2022 and 2023 by 100,000 bpd each, mainly due to the expected impact on jet fuel use from new travel curbs.

Oil prices have also been pressured by a stronger U.S. dollar, which makes oil more expensive for buyers using other currencies. The dollar has risen on expectations that the Federal Reserve will tighten its monetary policy sooner than expected to curb inflation, which hit an 11-year high in November.

Brent crude, the international benchmark, settled down $4.42, or 5.9%, at $70.62 a barrel on Wednesday, while West Texas Intermediate (WTI), the U.S. benchmark, dropped $4.60, or 6.2%, to $69.34 a barrel. Both benchmarks have lost more than 10% since hitting multi-year highs in October.

Some analysts expect oil prices to rebound in the coming months, as the impact of the Omicron variant fades and demand recovers. However, others warn that the market could remain volatile and oversupplied, especially if the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decide to increase their production further in January.

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