Trump Threatens Fed Chair Jerome Powell With Lawsuit Over Costly Federal Reserve Renovations

President Donald Trump has launched a fierce public attack on Federal Reserve Chair Jerome Powell, accusing him of gross mismanagement of an expensive renovation project at the Federal Reserve building and threatening a major lawsuit. 

According to Trump, the renovation costs have ballooned to $3 billion, a massive increase from the initial estimate of $50 million. 

This dramatic overspending has drawn sharp criticism from the president, who blames Powell for poor leadership throughout the project. 

On his platform Truth Social, Trump labeled Powell “Jerome ‘Too Late’ Powell,” targeting him over what he describes as repeated delays and incompetence. 

He claimed, “The damage he has done by always being Too Late is incalculable,” and added that he was “considering allowing a major lawsuit against Powell to proceed because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings.” 

This scathing rebuke signals Trump’s intent to escalate his dispute with Powell beyond public criticism. 

The president’s frustration is not limited to construction issues. Trump has repeatedly pressured Powell to lower interest rates throughout 2025, arguing that the Federal Reserve’s refusal to act has harmed the economy. 

However, Powell has maintained steady rates, citing ongoing economic uncertainty and specifically mentioning tariffs implemented during Trump’s administration as factors influencing his cautious approach, according to The Post Millennial.

The renovation itself has become a political lightning rod, attracting bipartisan scrutiny as costs reportedly soared to around $2.5 billion, far exceeding the original budgets. 

Critics, including Trump and his allies, have questioned whether all regulatory requirements were properly followed during the project. 

They have accused the Fed of wasteful spending on features such as basements and underground parking spaces beneath historic federal buildings located near the National Mall—investments many see as unnecessary extravagances. 

While Trump hints at possible legal violations related to the project, details of any threatened lawsuit remain vague. 

Congressional Republicans have also alleged that Powell misled Senate committees about the inclusion of luxury features in the renovation. 

Powell has denied these accusations, insisting the modifications were minor and did not require formal disclosure under federal planning laws

Trump’s public attack follows the release of the July inflation report, which showed consumer prices rising 2.7 percent annually—above the Federal Reserve’s 2 percent target but well below the 9.1 percent peak recorded last year, the New York Post reports. 

The continued high interest rates have pushed up borrowing costs for mortgages, loans and credit cards, leading to increased pressure on the Fed to adjust its monetary policy to stimulate economic growth. 

Despite his harsh criticisms and calls for accountability, Trump has not announced any immediate plans to remove Powell from his position. 

Instead, he has urged Powell to resign and indicated that he plans to appoint a successor who will aggressively reduce interest rates once Powell’s term expires in May 2026. 

This potential leadership change is already drawing attention from both political and economic observers. 

The growing tension between Trump and Powell highlights broader political and economic debates over how best to control inflation, manage federal spending and oversee major infrastructure projects. 

Their conflict reflects the deep divisions within the country regarding fiscal responsibility and the Federal Reserve’s role in balancing economic growth with price stability during a period of ongoing recovery and uncertainty.

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