President Donald Trump said this week that he is considering legal action against Federal Reserve Chair Jerome Powell, accusing him of “gross incompetence” over what the president described as runaway costs tied to renovations at the Federal Reserve’s headquarters.
Speaking to reporters during a press conference with Israeli Prime Minister Benjamin Netanyahu, Trump criticized the scope and expense of the construction project, calling it emblematic of Washington mismanagement.
“We’re thinking about bringing a suit against Powell for incompetence,” Trump said. “These aren’t outstanding buildings. These are small buildings. It’s gross incompetence, and it was his baby.”
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The president has repeatedly raised concerns about the renovation project, arguing that costs have ballooned far beyond what taxpayers should accept from an unelected central bank official. Earlier this year, Trump floated the possibility of legal action but did not provide details at the time.
Powell and the Federal Reserve have pushed back, noting that the renovation project was initially approved in 2017 and has gone through annual budget reviews by the Fed’s Board of Governors. The central bank recently published a “Frequently Asked Questions” page defending the project and disputing claims of mismanagement.
Still, Trump has remained sharply critical, framing the issue as part of a broader pattern of elite unaccountability in Washington. He reiterated that Powell should step aside before his term ends in May.
“He should resign. It would be a favor to the nation,” Trump said, adding that while Powell’s term is nearly over, he has not ruled out removing him sooner. “I would fire him. I’d love to fire him. Maybe I still might.”
Trump originally nominated Powell to lead the Federal Reserve during his first term. Powell was later renominated by President Joe Biden for a second four-year term.
