President Donald Trump has intensified his public criticism of Federal Reserve Chairman Jerome Powell, this time threatening a “major lawsuit” over the ongoing $3 billion renovation project at the Fed’s Washington, D.C. headquarters. Through a post on his social media platform, Trump attacked both the cost of the construction and Powell’s leadership, claiming the project should have cost only $50 million.
Trump did not clarify whether the lawsuit would be initiated by the government, a private entity, or himself. However, his language left little doubt that the idea is seriously under consideration. “Jerome ‘Too Late’ Powell must NOW lower the rate,” Trump wrote, reviving his long-standing frustration with Powell’s timing on interest rate decisions.
He also took aim at former Treasury Secretary Steven Mnuchin, sarcastically referring to him as “Steve ‘Manouychin,’” blaming him for pushing Powell’s nomination back in 2017. Trump accused Powell of causing “incalculable” damage by consistently acting too late on key economic decisions.
The central point of Trump’s new outburst revolves around the $3 billion renovation of two historic buildings that house the Federal Reserve. During a tour in July, Trump personally confronted Powell about the ballooning costs. Powell responded by saying he hadn’t heard of the $3.1 billion figure Trump mentioned, implying the president may have exaggerated or been misinformed.
At the same time, Trump used the controversy to renew his demands for aggressive interest rate cuts, arguing that lower rates would help the government save significant amounts of money on borrowing. Despite Trump’s pressure, the Fed has held rates steady in 2025 so far, though two cuts are expected by the end of the year, according to projections.
In July congressional testimony, Powell suggested that Trump’s own economic policies, especially his major tariff decisions, were part of the reason the Fed had not yet cut rates. Market traders are now expecting the first cut to happen after the September Federal Open Market Committee meeting, with further reductions possible in October and December.
The White House press secretary declined to elaborate on Trump’s lawsuit threat, simply stating that the president is “considering” it and would address it when ready. The Federal Reserve has not issued any official comment.
This situation highlights the ongoing tension between the executive branch and the independent central bank—a dynamic that could further influence markets, policy decisions, and the political climate in the lead-up to the next election.
