President Trump wants to sue 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 the issue in a post on Truth Social. "I'm considering a major lawsuit against Powell. He's been a terrible manager of the renovations to the Fed buildings. $3 billion for work that should have cost $50 million to fix. Not good," 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 led to unnecessary cost overruns.

The US President visited the project a few weeks ago. He argued with Chairman Powell right in front of the cameras when mentioning 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 additional costs were mainly due to increased labor and material costs, as well as unforeseen 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 lower 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. Traders are also increasing bets on 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 goals 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