Former President Donald Trump announced via Truth Social that he is considering a major lawsuit against Federal Reserve Chair Jerome Powell over alleged mismanagement of the Fed's headquarters renovation, which Trump claims cost $3.1 billion versus Powell's stated $2.5 billion. Trump accused Powell of "gross incompetence" and revealed a criminal referral to the DOJ for alleged perjury related to the project.
The threat coincides with Trump's intensified demands for immediate Fed rate cuts following July CPI data showing a 2.7% annual inflation rate—below expectations—and a 0.2% monthly increase. Trump argued this data disproves tariff-driven inflation, stating consumers are "not even paying the tariffs" due to cash inflows. His Fed nominee Stephen Miran supported this, noting inflation has averaged 1.9% annually since 2017 with no evidence of tariff impacts.
While no lawsuit has been formally filed, Trump's pressure aims to force monetary policy changes, warning that delayed cuts cause "incalculable economic harm." Powell maintains caution, awaiting clearer tariff effects before adjusting rates.