Trump Weighs Lawsuit Against Powell Over Fed Renovation Costs

• Trump is weighing a lawsuit against Powell over rising Federal Reserve renovation costs.
• CPI July data and Trump’s remarks pushed the 10-year Treasury yield to session highs.
• Trump nominated Stephen Miran to the Federal Reserve ahead of Powell’s May term end.

President Donald Trump is now threatening a lawsuit against Federal Reserve Chair Jerome Powell, using the rising costs of the central bank’s headquarters renovation as his latest point of attack.

In a social media post on Tuesday, Trump renewed his criticism of Powell for keeping interest rates unchanged and connected the issue to the Federal Reserve renovation.

“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,” Trump wrote. “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 did not clarify the details of the potential lawsuit against Powell. The White House did not respond to requests for further information.

Following Trump’s statement, the yield curve steepened. The 10-year Treasury yield reached its session high, reversing earlier moves after the release of consumer price index (CPI) data.

The CPI report for July showed underlying inflation rising, while goods prices increased at a slower pace. The data reduced concerns over tariff-related price pressures and raised expectations for a possible Federal Reserve rate cut in September.

Federal Reserve Renovation Becomes Central Issue

The Federal Reserve renovation has become a key point in Trump’s public disputes with Powell. The president toured the Federal Reserve’s Washington, DC headquarters construction site last month in a rare presidential visit to the central bank.

During that visit, Trump and Powell appeared to have a temporary truce. However, criticism resumed after the Federal Open Market Committee left interest rates unchanged in July.

How it started. This isn’t a new fight. Here’s our previous report on how the Fed’s renovation became a flashpoint.

Trump also increased his focus on Powell after firing the head of the Bureau of Labor Statistics earlier this month, following a jobs report indicating a slowdown in the U.S. labor market.

Trump Prepares for Powell’s Term End

Trump has repeatedly called for Powell to resign. While he has considered removing him before the end of his term, Trump has said he would wait until it expires in May to avoid potential market disruption.

Treasury Secretary Scott Bessent is leading the search for a replacement. According to two administration officials, Trump is expected to announce his decision in the fall.

Last week, Trump nominated Stephen Miran, one of his top economic advisers, to serve as a Federal Reserve governor. If confirmed by the Senate, Miran will complete the term of Adriana Kugler, which ends in January. This appointment gives Trump an earlier chance to influence the central bank before Powell’s term concludes.

A family affair? The President isn’t the only Trump making moves in the finance world. Here’s our report on Eric Trump’s Board inclusion.