KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Federal Reserve Chair Jerome Powell is under pressure again — this time over the ballooning cost of a renovation project at Fed buildings, now projected at $2.5 billion.
To address concerns, Powell has asked Inspector General Michael Horowitz to take a fresh look at the renovation costs, according to a letter cited by Politico.
What’s the Issue?
The Fed’s building overhaul costs have surged, triggering criticism, especially from Trump allies.
Trump has called on Powell to resign — not over policy, but now using renovation costs as a potential accountability angle.
Powell responded by inviting a new review by the Fed’s internal watchdog, showing an attempt at transparency.
Political Context
Powell was first nominated by Trump in 2017, then reappointed by Biden in 2021.
His term runs until May 15, 2026.
Under the law, the President cannot fire the Fed chair over monetary policy disputes, but scrutiny over non-policy matters like project costs is being explored as a possible workaround.
Key Players React
Senator Tim Scott (Republican, Senate Banking Chair): Welcomes the review, says it supports transparency.
Senator Elizabeth Warren (Democrat): Also addressed in the letter but has not issued a detailed statement yet.
White House economic adviser Kevin Hassett recently reinforced that the administration is closely watching this as a potential path to pressure Powell.
What to Watch Next
Outcome of the Inspector General’s renewed review
Congressional reactions following Powell’s request
Whether this becomes a broader political strategy to oust Powell before May 2026
Investor Takeaway
This isn’t about interest rates — it’s about institutional pressure. But for investors, any perceived threat to Fed independence could spark volatility. The Fed's credibility and neutrality are critical for markets, especially with rate policy, inflation, and elections all in play.
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