President Donald Trump has intensified his feud with Federal Reserve Chairman Jerome Powell, threatening to file what he called a “major lawsuit” over what he describes as gross mismanagement of the central bank’s massive headquarters renovation.
In a fiery statement, Trump blasted the multi-billion-dollar project as “horrible” and “grossly incompetent,” claiming that the upgrades should have cost a fraction of the reported amount. He accused Powell and the Federal Reserve of wasting taxpayer dollars, alleging that the spending spree is just another example of government bloat and fiscal irresponsibility.
The attack comes as Trump continues to pressure the Fed to cut interest rates in response to recent economic data, arguing that the central bank is holding back economic growth at a time when businesses and consumers need relief. Trump has repeatedly framed Powell’s leadership as slow, ineffective, and politically motivated, charging that the Fed’s current policy is damaging to the economy and to working Americans.
By linking the costly renovation project to the Fed’s broader policy decisions, Trump is making the case that Powell’s stewardship is fundamentally flawed—not just on interest rates, but on fiscal discipline as a whole. The former president suggested that a legal challenge could be a way to hold the Fed accountable, though such a move would likely face steep legal hurdles due to the Federal Reserve’s independent status.
Even so, Trump’s threat underscores his willingness to wage a public—and possibly legal—battle against the central bank. It’s the latest chapter in his long-running dispute with Powell, which has flared up repeatedly over the years as Trump has sought a more aggressive monetary policy to stimulate growth.
The rhetoric also plays into Trump’s broader economic message heading into the election season: that he will take on entrenched institutions, slash wasteful spending, and put economic growth ahead of bureaucratic inertia. Whether the lawsuit materializes or not, the warning shot makes clear that the fight between Trump and Powell is far from over.
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