Trump calls Fed chair Powell a 'fool,' threatens lawsuit over headquarters renovation

• The Fed renovation project's cost rose from an initial $1.9 billion estimate in 2019 to nearly $2.5 billion as of 2025, though Trump claims it will exceed $4 billion
• Trump lacks authority to fire Powell except for cause, and Powell has insisted he will complete his term as Fed chair, which expires in May 2026
• Trump also criticized Powell for being 'too late' with interest rate decisions, except before the election when he was allegedly 'too early' to help the Democratic candidate

Trump Renews Attack on Fed Chair Powell, Threatens Lawsuit

President Trump intensified criticism of Federal Reserve Chair Jerome Powell during a Mar-a-Lago press conference, calling him a "fool" and threatening legal action over the Fed headquarters renovation project. Trump accused Powell of "gross incompetence" in managing the renovation, claiming costs have ballooned to over $4 billion—though this figure appears unverified.

Key Facts:

• Powell's term as Fed chair expires May 2026; his board membership extends to January 2028
• Fed renovation initially estimated at $1.9 billion (2019), rose to $2.5 billion (2025) due to material costs and asbestos/lead remediation
• Trump disputes these figures, claiming the project is "the highest price of construction per square foot in the history of the world"
• During an August tour, Powell fact-checked Trump's $3.1 billion claim, noting it included a separate building completed in 2021

Market Implications:

Trump reiterated his desire to fire Powell, stating "I would love to fire him, but we're so close... maybe I still might." However, the president lacks authority to remove the Fed chair except for cause. Powell has maintained he will complete his term and that any removal attempt would be illegal.

Trump also criticized Powell's interest rate timing, claiming he was "too late" except before the election when cuts were "too early" to help Democrats. This ongoing tension between the White House and Fed leadership could impact market expectations for monetary policy and Fed independence concerns.

The confrontation underscores Trump's continued pressure on the Federal Reserve for more aggressive rate cuts to stimulate economic growth.