US President #DonaldTrump has once again targeted Federal Reserve Chair Jerome Powell after the release of July inflation data. Stressing the urgency to lower interest rates, Trump escalated his criticism by announcing he is considering suing Powell. This lawsuit is not about monetary policy, but focuses on the controversial renovations of the Federal Reserve buildings.
New Attack After Inflation Data
Following July’s inflation report, Trump reiterated his criticism on Truth Social, stating, “Powell, who is always late, should be cutting interest rates.” He accused the #Fed Chair of damaging the economy. Trump also praised former Treasury Secretary Steven Mnuchin’s dismissal of Powell as a “very good decision,” adding, “The damage he has done because he was so late is incalculable.”
$3 Billion Renovation Claim
Trump’s lawsuit centers on the Fed’s building renovation costs. He argued that what should have been a $50 million project ballooned to $3 billion. Labeling it “incompetent and terrible” management, Trump accused Powell and the Fed board of orchestrating a major fiasco.
Tense Visit Remains in Memories
Last month, Trump personally inspected the Fed renovations—a visit that could now be part of the litigation. Powell accompanied him during the tour, where they faced press questions, engaged in heated exchanges, and experienced tense moments on camera.
Disagreement on Interest Rate Policy
Trump’s criticism extends to the Fed’s interest rate policy. While the Fed recently kept rates steady citing global uncertainties and trade volatility, Trump insists that cutting rates is essential to accelerate economic growth. Throughout his 2024 campaign and presidency, Trump has labeled Powell as “an obstacle holding back the economy.” This latest lawsuit threat marks a serious challenge, questioning not only monetary policy but also the Fed’s financial management.