Trump Considers Lawsuit Against Fed Chair Powell
President Trump has expressed intentions to potentially sue Federal Reserve Chairman Jerome Powell, labeling his actions as “gross incompetence.” He criticized Powell for not reducing interest rates rapidly enough.
Trump alleged that the renovation of the Federal Reserve’s headquarters, situated near the National Mall in Washington, D.C., has exceeded its budget by approximately $1.5 billion.
During a press conference with Israeli Prime Minister Benjamin Netanyahu, Trump stated, “It’s going to end up costing us over $4 billion!”
He further remarked on the high construction costs, saying, “The cost per square foot to build is the highest in the history of the world. Gorgeous monuments can be built for far less.” He specified that a lawsuit for “gross incompetence” against Powell is being considered.
The Federal Reserve did not provide a comment immediately in response to these claims.
Earlier this year, Trump had donned a helmet while visiting a construction site, where he criticized what he deemed a “very extravagant project.” However, he mentioned he’d refrain from firing Powell, provided the Fed lowers interest rates, which remains a key focus for him.
This year, the Fed cut interest rates by a quarter percentage point three times, lowering the target rate to a range of 3.5% to 3.75%.
In a July communication to Russ Vought, the director of the White House Office of Management and Budget, Powell defended the renovation, highlighting its scale as it involves two historic buildings from the 1930s.
Trump compared the Fed’s renovation expenses to the cost of a new White House ballroom, emphasizing that while it’s a sizeable project, it’s still below budget and ahead of schedule.
He described the Fed renovation as Powell’s responsibility and labeled him as “incompetent,” hinting at possible legal action against him.
The notion of a president suing an appointee is unusual, and it’s unclear what legal grounds Trump might cite with his threats.
Though Trump has indicated he might want to dismiss Powell, the chairman’s term is set to end in May 2026.
“But maybe I still might,” he noted.
Trump appointed Powell as chairman in 2017 during his first presidency, but he has increasingly criticized Powell for not taking more aggressive actions in monetary policy.
He also highlighted that the U.S. GDP grew at a surprising rate of 4.3% in the third quarter of 2025, attributing this to factors despite the Fed’s management.
Trump included jabs at former President Joe Biden, who is expected to reappoint Powell in 2021.
