Trump threatens to sue Fed Chair Jerome Powell for ‘gross incompetence' over costly building renovation

• Trump called Powell 'incompetent' for both the renovation costs and for not cutting interest rates quickly enough, despite the Fed issuing three quarter-point rate cuts in 2025
• The lawsuit would be an unprecedented move against a presidential appointee, with Trump comparing the Fed renovation costs unfavorably to his own past development projects
• Powell's term as Fed Chairman expires in May 2026, and Trump suggested he might still fire him despite previously saying he wouldn't

Trump Threatens Legal Action Against Fed Chair Powell Over Building Renovation Costs

President Trump announced he's considering a "gross incompetence" lawsuit against Federal Reserve Chairman Jerome Powell over the renovation of Fed buildings near the National Mall in Washington, DC. Trump claims the project is over budget by approximately $1.5 billion, with total costs potentially reaching $4 billion—which he called the "highest price of construction per square foot in the history of the world."

The Federal Reserve disputed these figures, pointing to budget documents showing total renovation costs at approximately $2.5 billion for two historic buildings originally constructed in the 1930s.

During a press conference with Israeli Prime Minister Benjamin Netanyahu, Trump compared the Fed renovation unfavorably to his Doral golf resort project, claiming the latter is "under-budget and ahead of schedule" despite being "a massive job."

The Fed implemented three quarter-point rate cuts in 2024 (September, October, December), bringing the target rate to 3.5%-3.75%. Despite this monetary easing, Trump continues criticizing Powell—whom he appointed in 2017—for not cutting rates quickly enough, calling him "Too Late Powell" and "very incompetent."

Trump mentioned possibly firing Powell, whose term expires in May 2026, though he acknowledged it's near the end of his tenure. Such a lawsuit would represent an unprecedented action of a president suing his own appointee.

The president also criticized former President Biden for reappointing Powell in 2021 and boasted about recent GDP growth at an annual rate of 2.8%, achieved "despite the fact that we have a fool at the Federal Reserve."