Trump isn’t playing games.
President Donald Trump is turning up the heat on Federal Reserve Chairman Jerome Powell, revealing he’s considering a massive lawsuit over what he calls a lavish, wasteful, and grossly incompetent $2.5 billion taxpayer-funded renovation of the Fed’s Washington, D.C., headquarters.
The President accused Powell of damaging the U.S. economy by refusing to cut interest rates, keeping loans and mortgages painfully expensive for millions of Americans. Trump didn’t mince words, branding Powell “Jerome ‘Too Late’ Powell” and blasting former Treasury Secretary Steven Mnuchin for pushing him to appoint Powell in 2017.
“The damage he has done by always being too late is incalculable,” Trump declared. “This project should have been a $50 million fix-up — not a multi-billion-dollar monument to waste.”
Inflation Down, But Powell Refuses to Act
Trump’s comments came just hours after new data showed inflation holding at 2.7% annually in July — far below the record 9.1% under Joe Biden in June 2022 but still above the Fed’s 2% target. Despite this progress, Powell has refused to lower interest rates at all in 2025, even after cutting them three times last year ahead of the presidential election.
The President has accused Powell of politically motivated decision-making, warning that high interest rates are crushing homebuyers, small business owners, retirees, and working families.
Republicans Demand Answers on “Secret” Changes
Republicans in Congress have also questioned whether Powell misled lawmakers by downplaying the luxury upgrades being added to the Fed’s headquarters. They point to costly, unapproved changes — including basements and underground parking beneath historic buildings near the National Mall — as violations of federal planning laws.
Powell has defended himself by saying the changes were “too minor” to disclose, but critics say the ballooning costs prove otherwise.
Trump’s Plan to Restore Affordable Borrowing
Trump, a billionaire developer who knows construction costs firsthand, toured the project in July and said the spending was “shocking.” While he has no immediate plans to fire Powell, Trump has made it clear: if Powell refuses to resign, a new Fed Chair will be installed in 2026 who will slash interest rates by more than 2% to give Americans relief.
The next Fed meeting on September 16 will decide whether rates finally come down — but Trump warns the country can’t afford more delays.
“We’ve blown through Powell and the complacent Fed Board because the economy is so strong,” Trump said. “Now it’s time for leadership that works for the American people — not against them.”