Trump threatens to sue Fed Chair Jerome Powell for ‘gross incompetence' over costly building renovation

Core Viewpoint - President Trump is contemplating a lawsuit against Federal Reserve Chairman Jerome Powell, accusing him of "gross incompetence" related to the Federal Reserve's renovation project, which he claims is significantly over budget [1][4][7]. Group 1: Lawsuit Consideration - Trump stated he is considering a lawsuit against Powell for "gross incompetence" due to the renovation costs of the Fed headquarters, which he claims are excessive [1][4]. - The lawsuit would be an unusual move, as it involves a president suing one of his own appointees, and the legal basis for such a lawsuit is unclear [7]. Group 2: Renovation Costs - Trump asserted that the renovation project is projected to cost over $4 billion, which he deems excessive compared to other construction projects [2][4]. - A spokesperson for the Federal Reserve indicated that the actual budget for the renovation is approximately $2.5 billion, contradicting Trump's claims [4]. Group 3: Interest Rates and Monetary Policy - Trump has been critical of Powell for not reducing interest rates quickly enough, despite the Federal Reserve's three quarter-point rate cuts in 2023, lowering the target rate to a range of 3.5% to 3.75% [5]. - Trump has previously expressed that he would not fire Powell as long as interest rates were being cut, indicating the importance of monetary policy to his administration [5][10]. Group 4: Historical Context and Comparisons - Trump compared the Fed renovation costs to the new White House ballroom, claiming his project is more cost-effective and ahead of schedule [6]. - Powell defended the renovation project, stating it involves significant historical buildings and is large in scope, which justifies the costs [6].