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The ongoing feud between President Trump and Jerome Powell has taken a sharp turn, as Trump is now threatening legal action against the Fed Chair.
Trump Blasts Powell Over Fed Building Costs
In a latest post on Truth Social, Trump expressed his frustration with how Powell handled repairs on construction relating to Federal Reserve buildings and accused him of massive overspending and mismanagement.
“Three Billion Dollars for a job that should have been a $50 million fix-up. Not good,” he said. Because of this, Trump is considering allowing a major lawsuit against Powell for what he calls a “horrible and grossly incompetent” job.
The Trump administration has previously criticized Powell over the renovation costs. Recently, Russell Vought, the budget chief, accused Jerome Powell of seriously mismanaging the Federal Reserve and misleading Congress about the price and scope of the big renovation project at the Fed’s headquarters.
Powell responded, saying that the renovation has been closely overseen and that necessary repairs drove the costs up. Trump also took a jab at former Treasury Secretary Steven Mnuchin and blamed him for backing Powell’s appointment.
Trump Pushes For Rate Cuts
Trump yet again called out Powell for not lowering interest rates. “The damage he has done by always being Too Late is incalculable”, he added. Despite this, Trump says the economy is strong enough to overcome Powell and the Federal Reserve Board’s slow actions.
Powell’s Future Uncertain
Powell’s term runs until May 2026, and Trump has talked about firing him sooner but later backed off, saying it was highly unlikely. The Fed chair can usually only be removed for serious reasons, not just policy differences.
Recently, Trump nominated Stephen Miran to the Federal Reserve Board to replace Adriana Kugler. Miran will serve on the Fed board until January 2026 while the search continues for a permanent replacement and a new Fed chair.