Trump Threatens Lawsuit Against Fed Chairman for Renovation Costs
President Donald Trump has indicated he might initiate a “major lawsuit” against Federal Reserve Chairman Jerome Powell. He has described Powell as “severely incompetent” regarding the management of a significant construction project at the Federal Reserve.
Trump has criticized the renovations, claiming they should have cost around $50 million but ended up ballooning to $3 billion. He expressed his frustration openly, saying, “Jerome ‘too late’ Powell now has to lower his rate. The damage he inflicted by being too late is immeasurable.”
In another comment, Trump noted he was contemplating a lawsuit due to what he described as “horrific, grossly incompetent work” during the construction of the Federal Reserve buildings. Just last month, Trump had a heated exchange with Powell about the exorbitant renovation costs, asserting they surpassed $3.1 billion. Powell, seemingly taken aback, remarked, “I’ve never heard of it from anyone.”
Trump also compared the renovation of the Federal Reserve building to his project of transforming an old post office in Washington, D.C. into a luxury hotel, which he claimed cost less. He stated, “I built a great hotel, a much bigger project than this, spent $200 million. The majority of it was knocked down by steel. There’s a marble bathroom, top fixtures, all the best, all brand new.”
For months now, Trump has pressed Powell to lower interest rates, arguing that such a move could save the U.S. hundreds of billions of dollars. In early July, he expressed his frustration that Powell was “sacrificing the future” for the country by not cutting rates. He claimed that if rates were reduced significantly, it would prevent substantial losses from inflation.
Despite Trump’s ongoing pressure, the Federal Reserve has maintained current interest rates, urging patience as tariffs are implemented. Interest rate traders are anticipating a potential quarter-point cut following the Federal Open Market Committee meeting in September, with further reductions possibly on the horizon for meetings in October and December.
