President Trump wants to sue the Fed chairman

White House spokeswoman Karoline Leavitt recently said that US President Donald Trump is considering suing Federal Reserve Chairman Jerome Powell. The reason is his management of the renovation of the Fed headquarters in Washington.

President Trump previously addressed this in a post on the social network Truth Social. "I am considering allowing a major lawsuit against Powell. He has been a terrible manager in the renovation of the Fed buildings. $3 billion for work that should have cost $50 million to fix. Not good at all," he wrote.

The Fed has yet to respond to Mr. Trump's statement.

The Fed is in the process of renovating two buildings. White House officials want an investigation into the renovations, saying poor oversight and potential fraud have caused costs to rise unnecessarily.

The US President visited the project a few weeks ago. He argued with Chairman Powell right in front of the cameras when he mentioned the cost of renovating the agency's infrastructure.

The Fed documents show that the initial cost estimate was $1.9 billion, but has now risen to $2.4 billion. The agency explained that the increased costs were mainly due to increased labor and material costs, as well as unexpected challenges.

Tổng thống Trump muốn kiện chủ tịch Fed - 1 — US President Donald Trump and Fed Chairman Jerome Powell in 2017 (Photo: Reuters).

The latest statement from the US President shows that the tension between him and Powell is escalating. Over the past few months, the US President has continuously pressured the Fed to reduce interest rates.

During his congressional testimony in July, Powell explained that if it weren’t for Trump’s tariffs, the Fed would have cut rates this year. In its updated forecast in June, Fed officials said there would be two rate cuts this year, each by 0.25 percentage points.

In the interest rate futures market, traders are betting on a more than 90% chance of the Fed cutting rates at its September meeting. In addition, traders are also increasing bets on the possibility of the Fed cutting rates at its October and December meetings.

At the end of July, the Fed kept its benchmark interest rate unchanged at 4.25-4.5%. The agency did not act due to uncertainty about the economic outlook. The Fed said that there were still risks to both inflation and employment targets and wanted to wait until the trends of these two factors became clearer.

Source: https://dantri.com.vn/kinh-doanh/tong-thong-trump-muon-kien-chu-tich-fed-20250813133441426.htm