Trump May Sue Powell as CPI Data Lifts Crypto

• Trump is considering a lawsuit against Fed Chair Jerome Powell over $3 billion in renovation costs, calling his management incompetent.
• The US CPI data at 2.7%, below the expected 2.8%, supports Trump’s push for a September Fed rate cut, lifting crypto prices.
• Trump and his Fed nominee, Stephen Miran, argue tariffs aren’t causing inflation, with CPI steady at 1.9% annually since Trump took office.

President Donald Trump is stirring things up again, saying he might sue Federal Reserve Chair Jerome Powell over the high costs of renovating Fed buildings. At the same time, he’s pushing hard for the Fed to cut interest rates after the latest US CPI data came in at 2.7%, lower than the expected 2.8%.

This news, reported on August 12, 2025, has lifted the crypto market, with Bitcoin hitting $119,000 and Ethereum topping $4,400. Trump’s comments on Truth Social show his frustration with Powell, whom he calls “Too Late” for delaying rate cuts and mismanaging the Fed’s construction projects.

Trump’s Pressure on Powell Intensifies

Trump claims the Fed’s renovation, which he says ballooned to $3 billion from what should’ve been a $50 million job, shows Powell’s incompetence. He’s even hinted at letting a major lawsuit against Powell move forward, tied to these costs and a past claim of perjury sent to the Justice Department.

Last month, Trump visited the Fed’s construction site and pressed for lower rates there too. The recent CPI data, showing yearly inflation at 2.7% and monthly at 0.2%, down from 0.3%, backs his argument that his tariffs aren’t driving up prices. He says the strong economy is powering through Powell’s delays, with cash pouring into the US without burdening consumers.

Stephen Miran, Trump’s pick for the Fed Board, chimed in on CNBC, saying the CPI numbers prove inflation is under control at 1.9% annually since Trump took office. He sees no sign of tariff related price spikes and believes the data is solid, unlike job reports that often get revised. With an 82.4% chance of a 25 basis point rate cut in September, per CME Fed Watch, Trump’s push might gain traction.

He contends lower rates would relieve debt and accelerate growth, while Powell’s conservatism, holding back to await tariff effects, is restraining.

The growth of the crypto market, adding $113 billion in value, is related to this prodding of looser money policies. The ongoing conflict between Trump and Powell, now added to with threats of legal action, keeps the Fed in headlines. If interest rates do fall, crypto can expect more gains, but Trump’s irritation over Powell’s haste and the Fed’s spending is currently making headlines.

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