WASHINGTON — President Trump on Tuesday said his next line of attack against “loser” Federal Reserve Chairman Jerome Powell for refusing to lower interest rates could be a lawsuit over his $2.5 billion headquarters renovation.
The president even slammed his own first-term treasury secretary, Steven Mnuchin, for recommending the head of the Central Bank.
“Jerome ‘Too Late’ Powell must NOW lower the rate. Steve ‘Manouychin’ really gave me a ‘beauty’ when he pushed this loser,” Trump wrote, misspelling the name of his then-cabinet member who encouraged him to pick Powell in 2017.
“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,” the president said.
He added that the construction project “should have been a $50 Million Dollar fix up.”
It’s unclear what the lawsuit’s claims would be. Powell’s press office did not immediately respond to a Post request for comment.
The president slammed Powell shortly after the monthly release of inflation data for July, with the Consumer Price Index showing a 2.7% annual increase in prices — remaining above the Fed’s 2% target but well below a 9.1% peak under former President Joe Biden in June 2022.
Powell has refused to lower interest rates at all in 2025 — with Trump alleging political motivations after three cuts last year, including two reductions shortly before the presidential election. During that race, Vice President Kamala Harris faced criticism for her role in the incumbent administration’s economic program.
Powell has justified the unchanged rates by citing the unknown effect of Trump’s tariffs on inflation.
The Fed’s next meeting to discuss possible rate cuts is scheduled for Sept. 16.
High interest rates have made it more expensive to finance home purchases and for businesses and consumers to take out loans, including to lease cars and reduce credit-card balances.
Trump and his team recently appeared to back away from allegations that Powell may have broken the law over the government building renovations, which could have provided a potential justification for termination.
Congressional Republicans had suggested that Powell lied to a Senate committee — a crime punishable by five years in prison — by testifying that the building lacked various luxury features, insisting that plans had changed.
Trump’s budget chief, Russ Vought, then wrote to Powell last month pointing out an apparent Catch-22: that he may have violated the National Capital Planning Act by making unapproved changes to plans.
Powell replied that he considered the changes minor enough that disclosure was not required.
Trump, a billionaire real-estate developer, said he had no plans to fire Powell after touring the site on July 24 — attributing cost overruns to wasteful decisions including to retroactively build basements and parking spots beneath historic buildings just north of the National Mall.
Trump has said he wants Powell to resign but that if he won’t do so, he plans to empower a replacement when his term expires in May 2026 who will immediately move to lower interest rates by more than 2%.
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