Trump vs. Fed Chairman
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In a statement on Tuesday, President Donald Trump launched a fresh offensive against Federal Reserve Chairman Jerome Powell, whom he branded a “loser,” hinting at a potential lawsuit over the Fed’s $2.5 billion headquarters renovation project. The president’s remarks come as he continues to press Powell to slash interest rates, a demand the central banker has so far resisted in 2025.
Trump didn’t hold back, even taking a swipe at his former Treasury Secretary Steven Mnuchin for recommending Powell back in 2017.
“Jerome ‘Too Late’ Powell must NOW lower the rate. Steve ‘Manouychin’ really gave me a ‘beauty’ when he pushed this loser,” Trump wrote, notably misspelling Mnuchin’s name while reflecting on his first-term decision to appoint Powell.
The president’s frustration stems from what he calls Powell’s tardy and damaging decisions, claiming, “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.”
“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 argued the renovation, which he believes “should have been a $50 Million Dollar fix up,” has ballooned into an unnecessarily extravagant expense.
Details of the potential lawsuit remain murky, and Powell’s press office did not respond to inquiries for comment by the New York Post. The remarks followed the release of July’s Consumer Price Index, which reported a 2.7% annual price increase—above the Fed’s 2% target but a far cry from the 9.1% peak seen in June 2022 under President Joe Biden.
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With inflation clearly under control, it is hard to make the case for the higher interest rates that Powell is clinging to. Spending $2.5 billion on an office building also seems excessive.
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