Trump Threatens Lawsuit Against Powell: "Wasted $3 Billion on Fed Building, Cut Rates Now"

"$50 Million Would Have Been Enough, But He Spent $3 Billion"
Mnuchin, Who Recommended Powell, Also Called Out

On August 12 (local time), U.S. President Donald Trump warned that he might file a lawsuit against Federal Reserve (Fed) Chair Jerome Powell over alleged excessive spending on the renovation of the Fed's headquarters building, after Powell refused to comply with Trump's repeated demands for an interest rate cut.

AP Yonhap News

On his self-created social networking service, Truth Social, President Trump stated, "I am considering filing a massive lawsuit against Powell for the terrible and seriously incompetent job he did managing the Fed building renovation." He criticized, "He spent $3 billion on repairs that should have cost only $50 million. Not good!"

Previously, President Trump visited the Fed headquarters last month and pointed out that the building renovation costs were excessive. Analysts interpreted this as a form of pressure on Chair Powell, who has repeatedly refused Trump's calls for interest rate cuts.

On this day as well, Trump reiterated his demand for a rate cut, saying, "Powell, who always moves too late, must lower rates right now. The damage he is causing is incalculable." He added, "Fortunately, the economy is strong, and we have moved beyond Powell and the complacent Fed board."

President Trump also mocked former Treasury Secretary Steven Mnuchin, who had recommended Powell for the Fed chair position.

Intentionally altering the name of Mnuchin, who served as Treasury Secretary during Trump's first term, he referred to him as "Steven Manouychin" and said, "I really felt the 'beauty' when he pushed this loser."

Trump's remarks came immediately after the release of the July Consumer Price Index (CPI). According to the U.S. Department of Labor, the CPI for July 2025 rose 2.7% year-on-year, the same as in June (2.7%) and below market expectations (2.8%). As a result, the interest rate futures market raised the probability that the Fed would cut rates by 0.25 percentage points at the September Federal Open Market Committee (FOMC) meeting, lowering the current rate from 4.25-4.5% to 4.0-4.25%, to as high as 90%.