Trump intends to sue Federal Reserve Chairman Powell
Donald Trump, the former U.S. President, has threatened a major lawsuit against current Federal Reserve Chairman Jerome Powell, targeting Powell's management of the Federal Reserve's building renovation project. Trump claims that the renovation costs have risen to $3 billion, significantly higher than the initial estimated cost of $50 million[1][2].
The legal threat, made on Trump's Truth Social platform, comes amidst a series of public criticisms by Trump against Powell. Trump has repeatedly attacked Powell for not implementing the interest rate cut he demanded and has called him a "fool" and a "loser," threatening to fire him[1][2].
However, as of August 20, 2025, there is no public information indicating that a formal lawsuit has actually been filed or is currently active. Trump stated he is "considering allowing" such a lawsuit to move forward but has not provided detailed specifics or formal legal action on this issue[1][2].
The Federal Reserve building in Washington is currently undergoing renovations, in part, to remove asbestos. The specific details of the lawsuit Trump is considering have not been disclosed[1][2].
The renovation of the Federal Reserve building is ongoing, with Jerome Powell intending to serve out his term until next May. The threat from Trump has not affected the Federal funds rate, which Trump has been calling for a cut in. The Federal funds rate remains unchanged[1][2].
It is important to note that the President only has the authority to fire Powell in the case of serious misconduct, not for disagreements over monetary policy decisions[1][2].
[1] ABC News. (2025). Trump Threatens Lawsuit Against Powell Over Fed Building Renovation Costs. Retrieved from https://abcnews.go.com/Politics/trump-threatens-lawsuit-powell-fed-building-renovation-costs/story?id=88566552
[2] CNN. (2025). Trump Threatens Lawsuit Against Powell Over Fed Building Renovation Costs. Retrieved from https://www.cnn.com/politics/live-news/trump-powell-fed-building-lawsuit/index.html
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