Trump blasts Powell’s ‘incompetence’ amid Federal Reserve headquarters overhaul
. . . Calls for Fed Chair’s removal, targets $2.5 billion renovation project
US President Donald Trump has threatened to file a lawsuit against Federal Reserve Chairman Jerome Powell over the ballooning costs of renovating the central bank’s historic headquarters in Washington, DC.
The warning, posted Tuesday on Truth Social, marks the latest escalation in Trump’s ongoing campaign against Powell.
The two have been at odds over interest rate policy, with Trump pushing for steep rate cuts while Powell insists that decisions must be guided by economic data rather than political pressure, Al-Jazeera reports.
“Jerome ‘Too Late’ Powell must NOW lower the rate,” Trump wrote. “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.”
Trump has seized on the cost overruns of the renovation project — initially estimated at $1.9 billion but now expected to reach about $2.5 billion — as evidence of Powell’s mismanagement.
The renovations include asbestos removal, structural repairs, and modernization of ventilation, plumbing, electrical, and fire detection systems in buildings dating back to the 1930s.
Powell explained in a July letter that these updates are necessary for safety and functionality, as neither building has had a full renovation since construction.
Some Republican lawmakers have indicated plans to investigate the rising costs, while Trump has used the controversy to call for Powell’s resignation.
Powell’s term ends in May 2026, and Trump, who originally nominated him, has hinted at appointing a more compliant successor.
Trump criticized Powell’s rate decisions as “too late,” claiming the damage caused is incalculable but saying the economy remains strong despite the Fed’s leadership.
Meanwhile, Federal Reserve officials worry that Trump’s aggressive trade tariffs could fuel inflation.
Recent Labor Department data shows consumer inflation rose 2.7% over the past year, above the Fed’s 2% target, which typically discourages interest rate cuts.
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