Exclusive: Longtime critic Sen. Warren defends Fed in White House attacks

What they're saying: "When [Trump's] initial attempts to bully Powell failed, Trump and Republicans in Congress suddenly decided to look into how much the Fed is spending on building renovations," Warren will tell a group of financial policymakers and economists at the Exchequer Club of Washington, D.C.

• In the remarks — first seen by Axios — Warren acknowledges the topsy-turvy world in which she defends the institution that she has slammed for years.
• "Independence does not mean impunity and I have long pushed for more transparency and accountability at the Fed. But give me a break," Warren will say in a speech that slams Trump economic policy.
• "[N]obody is fooled by this pretext to fire Chair Powell. And markets will tank if he does."

The big picture: The new attack line among top Trump administration officials and some Republican lawmakers — renovations of the Fed's offices are too costly and over-the-top.

• President Trump on Tuesday said that the renovations issue could be grounds to fire Powell, a legally dubious move.

Flashback: Just a few weeks ago, Warren co-sponsored legislation with Florida Republican Sen. Rick Scott that would force the Fed's watchdog to be Senate-confirmed — a move aimed at stepping up oversight of the central bank.

• Warren has called Powell a "dangerous man" in her criticism of the Fed's bank regulation policies.
• She is among the few lawmakers who voted against his confirmation in 2017; she did so again when former President Biden renominated Powell in 2021.
• "Look, I don't think [Powell] should be chairman of the Federal Reserve. I have said it as publicly as I know how to say it. I've said it to everyone," Warren told NBC's "Meet the Press" in 2023.