Trump threatens lawsuit against Fed Chair Jerome Powell

President Trump announced he is considering filing a lawsuit against Federal Reserve Chair Jerome Powell, citing “gross incompetence” over renovations to Federal Reserve buildings. During a press conference with Israeli Prime Minister Benjamin Netanyahu, Trump claimed the construction project was poorly managed and that the costs ballooned unnecessarily, calling Powell’s oversight of the work his “baby” and describing the outcome as incompetent.

Powell has disputed Trump’s characterization of the renovation expenses. The Federal Reserve published a FAQ addressing the claims, clarifying that the project was first approved in 2017 and has undergone annual budget review by the Fed’s board of governors since its inception, contradicting Trump’s narrative of unchecked spending under Powell’s watch.

Trump has previously threatened legal action against Powell and has repeatedly demanded his resignation, stating “He should resign. It would be a favor to the nation.” However, Trump indicated he would allow Powell to complete his term, which ends in May, noting he was “so close” to the term’s conclusion and acknowledged Powell’s impending departure even as he suggested he might still remove him.

Trump originally nominated Powell to lead the Federal Reserve during his first presidency, and President Biden subsequently renominated Powell for a second four-year term. Trump’s ongoing fixation on the Federal Reserve leadership and his repeated attacks on Powell reflect his broader pattern of targeting the institution when monetary policy decisions conflict with his economic demands.

This lawsuit threat represents another instance of Trump weaponizing the legal system against federal officials who do not comply with his directives. The Federal Reserve’s independence from presidential control is foundational to U.S. economic stability; Trump’s repeated attempts to intimidate, remove, or sue the Fed chair directly undermine that institutional autonomy.

(Source: https://thehill.com/business/5665840-trump-powell-lawsuit-fed-buildings/amp/)