Trump is about to go scorched earth. He can’t take this any longer.
And President Trump warns of a damaging lawsuit against this powerful government official.
Trump Targets Federal Reserve Chairman in Latest Move
In a statement on Tuesday, President Donald Trump launched a fresh offensive against Federal Reserve Chairman Jerome Powell, whom he branded a “loser,” hinting at a potential lawsuit over the Fed’s $2.5 billion headquarters renovation project. The president’s remarks come as he continues to press Powell to slash interest rates, a demand the central banker has so far resisted in 2025.
Trump didn’t hold back, even taking a swipe at his former Treasury Secretary Steven Mnuchin for recommending Powell back in 2017.
“Jerome ‘Too Late’ Powell must NOW lower the rate. Steve ‘Manouychin’ really gave me a ‘beauty’ when he pushed this loser,” Trump wrote, notably misspelling Mnuchin’s name while reflecting on his first-term decision to appoint Powell.
The president’s frustration stems from what he calls Powell’s tardy and damaging decisions, claiming, “The damage he has done by always being Too Late is incalculable. Fortunately, the economy is sooo good that we’ve blown through Powell and the complacent Board.”
“I am, though, considering allowing a major lawsuit against Powell to proceed because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings.”
Trump argued the renovation, which he believes “should have been a $50 Million Dollar fix up,” has ballooned into an unnecessarily extravagant expense.
Details of the potential lawsuit remain murky, and Powell’s press office did not respond to inquiries for comment by the New York Post. The remarks followed the release of July’s Consumer Price Index, which reported a 2.7% annual price increase—above the Fed’s 2% target but a far cry from the 9.1% peak seen in June 2022 under President Joe Biden.
Powell has cited uncertainty around Trump’s tariffs as a reason to keep rates steady, despite three cuts in the prior year, two of which came just before the presidential election. During that campaign, Vice President Kamala Harris faced scrutiny for her role in the Biden administration’s economic policies.
High interest rates have ripple effects, driving up costs for homebuyers, businesses, and consumers seeking loans for everything from cars to credit card debt.
Trump’s latest comments come after he and his allies appeared to dial back earlier accusations that Powell may have broken the law over the renovation project, which some suggested could have justified his removal.
Congressional Republicans had previously accused Powell of misleading a Senate committee—a potential crime carrying a five-year prison sentence—by downplaying luxury features in the renovation plans, claiming they had been altered.
Last month, Trump’s budget chief, Russ Vought, pointed out a potential contradiction in Powell’s handling of the project, suggesting he may have violated the National Capital Planning Act by making unapproved changes. Powell countered that the modifications were minor and didn’t require disclosure.
After touring the site on July 24, Trump, a billionaire real estate developer, attributed the cost overruns to poor decisions, such as retroactively adding basements and parking beneath historic buildings near the National Mall.
Despite his criticisms, Trump said he has no plans to fire Powell but urged him to resign. If Powell refuses, Trump intends to appoint a successor in May 2026 who will swiftly cut rates by over 2%.
With the Federal Reserve’s next meeting on interest rates set for September 16, all eyes are on whether Powell will budge—or if Trump’s legal threats will escalate.
Stay tuned to The Federalist Wire.
