"Donald Trump criticizes inadequately capable performance": US central bank president under fire by former president Trump
In a recent development, U.S. President Donald Trump has publicly threatened to sue Federal Reserve Chair Jerome Powell over the costly renovation of the Federal Reserve’s Washington headquarters. The renovation, estimated at around $2.5 billion by Powell, has been a point of contention for Trump, who claims the cost to be $3.1 billion.
This legal threat comes amid Trump’s ongoing campaign to pressure the Fed to cut interest rates immediately, a move that Powell has been cautious about due to lingering concerns about core inflation and economic stability. Trump alleges mismanagement and "fraud" regarding the renovation expenditures, characterizing them as an unnecessary and excessively expensive project.
The confrontation between Trump and Powell highlights tensions over Fed independence and political pressure from the White House. Trump’s rhetoric raises concerns about political interference in the Fed’s decisions and governance. Despite the escalating political pressure, Powell has stated his intention to remain in office until his term ends in May 2026.
The renovation of the Federal Reserve’s headquarters has been a contentious issue for Trump, who visited the site at the end of July and deemed it too expensive. Trump maintains that the cost of the renovation should have been $50 million, a stark contrast to the actual estimated cost.
Trump’s dissatisfaction with the Federal Reserve and Powell’s decisions is not new. For weeks, he has been expressing his growing impatience with the monetary institution, even going as far as to call the Fed president an "idiot" and suggest his removal.
In a surprising move, Trump is also considering replacing Powell with someone who aligns more with his views. He has announced his intention to sue Powell and has been on the verge of placing one of his top economic advisors, Stephen Miran, within the Fed, following the resignation of a governor.
Powell serves as one of twelve voices on the Fed’s rate-setting committee. Despite the ongoing conflict, he continues to serve as the president of the Federal Reserve, a role he was appointed to by Trump during his first term. During a visit to the renovation site, both Trump and Powell were seen wearing hard hats, but it was Powell who corrected Trump on the spot about the cost of the renovation.
This legal threat is part of a broader political struggle around monetary policy and fiscal oversight of the Federal Reserve facilities, reflecting heightened tensions as inflation and economic issues remain central U.S. concerns.
(Also read: Reports suggest that Donald Trump's wife, Melania, is exerting growing influence on him, which could potentially impact his decisions regarding the Federal Reserve and Powell.)
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