United States President Donald Trump has suggested that Federal Reserve Chief Jerome Powell could face a lawsuit over renovation costs for the central bank’s nearly century-old headquarters.
The threat, issued on Tuesday in a post on Truth Social, is the latest salvo in Trump’s ongoing pressure campaign against the central bank leader.
The two have clashed over interest rates: Trump has pushed for aggressive cuts, while Powell has maintained the bank will make a decision based on financial indicators, not political pressure.
“Jerome ‘Too Late’ Powell must NOW lower the rate,” Trump wrote in Tuesday’s message. “I am, though, 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.”
The president’s attacks on Powell have become a source of concern for economic observers, who worry that Trump is attempting to undermine the independence of the central bank and bring it into closer alignment with his political priorities.
Trump has latched onto cost overruns stemming from construction work at the bank’s headquarters in Washington, DC, which he said points to Powell’s “incompetence”.
The Federal Reserve is currently undergoing renovations on two of its historic buildings, both built in the 1930s, including asbestos removal, major structural work to meet modern safety standards, and the replacement of antiquated systems for ventilation, plumbing, electricity and fire detection.
“While periodic work has been done to keep these buildings occupiable, neither building has seen a comprehensive renovation since they were first constructed,” Powell wrote in a letter to the Trump administration on July 17.
“Both buildings were in need of significant structural repairs and other updates to make the buildings safe, healthy, and effective places to work.”
But while the renovation project was initially estimated to cost $1.9bn, that number has increased to around $2.5bn as construction proceeds. Some Republican lawmakers have said they may open an investigation into the increased projected cost, and Trump has used the renovation to push for Powell to step down.
Trump has also pushed strongly for a decrease in rates, dubbing Powell by the nickname “Too Late” for his supposed delays in cutting rates.
Powell’s term as Federal Reserve chair ends in May 2026. Trump, who nominated Powell to the role during his first term, has already suggested he is considering replacing the outgoing chair with a more compliant figure.
“The damage he has done by always being Too Late is incalculable,” Trump said on Tuesday. “Fortunately, the economy is sooo good that we’ve blown through Powell and the complacent Board.”
Powell and economic policymakers at the Federal Reserve, meanwhile, have expressed concern over Trump’s aggressive tariff policy, which they maintain could increase inflation in the coming months.
Data released by the US Labor Department on Tuesday said that consumer inflation had risen 2.7 percent for the 12-month period ending in July. That number was an increase of 0.2 percent over June.
Source: Aljazeera
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