Trump Considers Legal Action Against Fed Chair Powell Over Renovation Costs

President Donald Trump has announced his intention to consider a lawsuit against Federal Reserve Chair Jerome Powell, accusing him of “gross incompetence” related to a significant renovation project at the Federal Reserve headquarters. This declaration came during a press conference on March 11, 2024, at his Mar-a-Lago estate, alongside Israeli Prime Minister Benjamin Netanyahu.

Trump’s comments centered around the renovation project, which he claims will exceed $4 billion. He referenced previous estimates that projected costs at approximately $2.5 billion, stating, “Gorgeous monuments are built for a much smaller price.” He elaborated that the lawsuit would target Powell’s management of the project, asserting, “It was his baby. The guy’s just incompetent.”

This is not the first time Trump has threatened legal action against Powell. Back in August 2023, he expressed on social media platform Truth Social that he was “considering allowing a major lawsuit against Powell to proceed,” citing similar concerns over the management of the renovation.

During the press conference, Trump also criticized his predecessor, former President Joe Biden, for reappointing Powell in 2022, despite having initially nominated him in 2017. Trump remarked, “You would have thought he wouldn’t have done that, but he’s an absolute fool who’s building a new Federal Reserve, or he’s doing a renovation of a building.”

Trump’s frustrations with Powell have been a recurring theme over the past year. He has often criticized the Federal Reserve for not lowering interest rates rapidly enough, even coining the nickname “Too Late Powell.” Recently, he expressed his desire to dismiss Powell, stating, “I would fire him. I’d love to fire him. But we’re so close, you know. But maybe I still might.”

Looking ahead, Trump indicated that he plans to announce Powell’s potential replacement next month. He mentioned two candidates: former Federal Reserve Board member Kevin Warsh and current National Economic Council Director Kevin Hassett. He remarked, “I think the two Kevins are great.”

The Federal Reserve Board of Governors has chosen not to comment on the matter when approached by media outlets.

As the situation develops, it remains to be seen how Trump’s potential legal action will unfold and whether he will follow through with his threats to replace Powell.