Fed’s Powell Defends $2.5 Billion HQ Renovation; Argentina’s Credit Rating Soars Amid Global Economic Shifts

Federal Reserve Chair Jerome Powell has issued a formal response defending the Fed's $2.5 billion headquarters renovation, requesting an Inspector General review to ensure transparency. Powell clarified that the extensive project involved major structural repairs, safety and systems upgrades, and the removal of asbestos and lead contamination, asserting there are no rooftop gardens or newly installed marble. He added that changes since National Capital Planning Commission (NCPC) approval aimed at scaling back and simplifying construction, with no new elements added, thus requiring no additional review. The Fed Board emphasizes transparency, noting the project has been under ongoing review, including by the Inspector General, since its launch in 2017.

Moody's has upgraded Argentina's credit rating for a second time this year, raising its long-term foreign and local currency issuer ratings to Caa1 from Caa3, though it remains in the non-investment grade or "junk" territory. This upgrade reflects the ratings agency's view that the extensive liberalization of exchange and capital controls, coupled with a new International Monetary Fund (IMF) program, supports hard currency liquidity and eases pressure on external finances, reducing the likelihood of a credit event. The outlook was changed to stable from positive, balancing these positive developments against continued credit challenges and a so far limited structural rebalancing of external accounts.

Beauty products company Conair was among the companies Moody's downgraded further into junk status during the second quarter. This move reflects ongoing credit market adjustments and challenges faced by certain corporate entities.

The US House of Representatives passed the 'Genius Act' crypto regulation bill by a vote of 308-122, sending the landmark legislation to President Trump for his signature. This bill establishes a federal framework for stablecoins, requiring them to be backed by liquid assets such as U.S. dollars and short-term Treasury bills, and mandating that issuers publicly disclose the composition of their reserves on a monthly basis.

The US Federal Trade Commission (FTC) has set aside an order that barred former Pioneer Natural Resources CEO Scott Sheffield from joining Exxon Mobil's (XOM) board. The FTC denied Sheffield's petition on procedural grounds, stating he was not a party to the original order, but indicated it plans to consider his arguments under a different rule that allows the commission to reconsider prior decisions. The initial ban stemmed from allegations that Sheffield colluded with OPEC officials to inflate global crude prices, which he denies.