US President #DonaldTrump again targeted Fed Chair Jerome Powell following the release of July inflation figures. Emphasizing the need to lower interest rates, Trump went beyond his usual criticisms and announced that he is considering suing Powell. The lawsuit is not about monetary policy, but about the Federal Reserve's controversial building renovations.
New Attack After Inflation Data
Following the release of July inflation figures in the US, Trump reiterated his criticism of Powell in a post on Truth Social. "Powell, who is always late, should be cutting interest rates," Trump said, accusing the #Fed Chair of harming the economy.
Trump claimed that Powell's dismissal by former Treasury Secretary Steven Mnuchin was a "very good decision," adding, "The damage he has done because he was so late is incalculable."
$3 Billion Renovation Claim
Trump's lawsuit concerns the Fed's building renovation projects. The former president argued that significant cost overruns had occurred during the renovation of the Federal Reserve buildings, saying, "He did a job that could have been done for $50 million for $3 billion." Describing this as an example of "incompetent and terrible" management, Trump claimed that Powell and the Fed board had orchestrated a major fiasco during this process.
Tense Visit Remains in Memories
As you may recall, Trump inspected the Fed renovations on-site last month, which could be the subject of litigation. It is known that Powell accompanied him during the visit. The two answered questions from the press, engaged in heated exchanges at times, and tense moments erupted in front of the cameras.
Disagreement on Interest Rate Policy
Trump's criticism of Powell centers on interest rate policy. The Fed has recently attributed its decision to keep interest rates steady to global uncertainties and volatility in trade policies, while Trump argues that interest rate cuts are necessary for faster economic growth.
Trump has frequently described Powell as "an obstacle holding back the economy" during the 2024 election campaign and his subsequent presidency. However, this time, his threat of a lawsuit drew attention as a harsh statement questioning not only monetary policy but also the Fed's financial management skills.
