US President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, saying he is considering allowing a “major lawsuit” over Powell’s handling of costly renovations at the Fed’s Washington, DC, headquarters.
In a Truth Social post on Tuesday, Trump accused Powell of overseeing “grossly incompetent” management of the project, which he claimed has soared to USD 3 billion from what should have been a USD 50 million fix-up.
White House press secretary Karoline Leavitt confirmed the president is considering legal action but offered no further details. So far, the Fed has not issued any response over the matter.
The renovations, involving two historic buildings, were originally budgeted at USD 1.9 billion but are now projected to cost USD 2.4 billion, according to Fed documents. The central bank attributes the overruns to higher labor and materials costs, asbestos abatement, and other unforeseen challenges.
Trump has repeatedly pressured Powell to slash interest rates, arguing that lower borrowing costs would save the US billions. The Fed, which raised rates in 2022 and cut them several times in 2024, has so far held them steady in 2025 despite Trump’s demands. Powell has previously pushed back, including during a recent meeting with Trump at the construction site.
A Supreme Court ruling earlier this year reaffirmed that the Fed chair cannot be removed by the president over policy disagreements, highlighting the central bank’s independence.
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