US President Donald Trump has threatened to file a “major lawsuit” against Federal Reserve Chairman Jerome Powell, escalating his public feud with the central bank chief. The threat, announced on social media, centers on Trump’s dissatisfaction with the Federal Reserve’s handling of interest rates and the rising costs of a renovation project at the bank’s Washington, D.C. headquarters. Trump has been a vocal critic of Powell’s monetary policy, arguing that interest rates should have been cut more aggressively.
The renovation of the Federal Reserve’s two historic buildings has seen its estimated cost increase from $1.9 billion to around $2.5 billion, a figure that Trump has used to criticize Powell as “incompetent.” While some Republican lawmakers are considering an investigation into the cost overruns, Trump’s move is seen as a direct effort to pressure the independent institution. The Federal Reserve, meanwhile, maintains that its decisions are based on economic data, and officials have expressed concern that the president’s proposed tariff policies could lead to increased inflation.
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Trump threatens to sue Fed chair Powell
Trump threatens lawsuit against Federal Reserve chairman Jerome Powell over renovation costs
