President Trump threatens a major lawsuit against Fed Chair Jerome Powell for gross incompetence over a renovation project ballooned to over $4 billion.
Story Highlights
- Trump labels Powell a “fool” at Mar-a-Lago press conference, vows suit for mismanaging Fed headquarters renovations from $1.9 billion to $4 billion plus.
- The project was approved in 2017 under Trump’s own Powell nomination, but costs surged due to inflation and deferred maintenance, hitting $2.5 billion officially.
- Powell fact-checked Trump’s $3.1 billion claim during August 2025 tour, defending 150 years of neglected upkeep while Trump pushes for Fed independence shakeup.
- Powell’s term ends May 2026; Trump lacks firing power without cause, but lawsuit threat bolsters anti-waste stance for American taxpayers.
Trump Renews Attack on Powell’s Leadership
President Donald Trump accused Federal Reserve Chair Jerome Powell of “gross incompetence” during a Mar-a-Lago press conference on Monday. Trump threatened a lawsuit over the Federal Reserve headquarters renovation, claiming costs exceed $4 billion for small buildings. This escalation occurred alongside Israeli Prime Minister Netanyahu. Trump reiterated his desire to fire Powell, whom he appointed in 2017, but noted legal limits without cause. The confrontation underscores Trump’s frustration with Fed spending amid economic recovery efforts.
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Renovation Costs Spiral Under Powell’s Watch
The Fed’s project renovates the Marriner S. Eccles and McChesney Martin buildings, approved in 2017 during Powell’s early tenure. Initial 2019 estimates stood at $1.9 billion. By 2025, official costs reached nearly $2.5 billion due to material inflation in wood, steel, and cement, plus asbestos and lead remediation. The McChesney Martin building completed in 2021. Trump disputed figures during an August 2025 tour, claiming $3.1 billion, which Powell fact-checked on site. Fed created an FAQ defending the 150-year deferred maintenance necessity.
Tense Tour and Historical Tensions
Trump and allies toured renovations with Powell in summer 2025, pressuring him on policy and costs. Powell rebutted claims, emphasizing project origins predate full Biden era. Biden reappointed Powell in 2021; his chair term ends May 2026, board role to 2028. Trump previously alleged Powell has “mental problems” last month and threatened firing repeatedly, though he waffled in April. No lawsuit filed yet. This dynamic tests presidential influence over independent agencies, contrasting Trump’s fiscal prudence like his under-budget White House ballroom project.
Trump portrays Powell’s oversight as emblematic of bureaucratic waste, resonating with taxpayers weary of overspending after years of fiscal mismanagement under prior administrations. Legal experts note presidents lack unilateral firing power, protecting Fed autonomy. Powell vows to serve his term, prioritizing independence amid Trump’s rate cut demands for economic stimulus.
Trump Targets Federal Reserve Renovation With Lawsuit Threathttps://t.co/l75hgAFqWq
— RedState Updates (@RedStateUpdates) December 30, 2025
Implications for Economy and Taxpayers
Short-term, threats heighten debates on Fed independence, risking market volatility from perceived interference. Long-term, a lawsuit could challenge legal boundaries on presidential oversight of infrastructure. Construction costs, highest per square foot per Trump, spotlight overruns straining Fed budgets. Politically, it reinforces Trump’s anti-establishment image, pressuring Powell before term ends. Economically, it ties to inflation narratives, urging accountability. Globally, central banks monitor U.S. precedent on politicizing operations. Taxpayers demand relief from such excesses.
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Trump calls Fed chair Powell a ‘fool,’ threatens lawsuit over headquarters renovation
President Donald Trump weighs bringing ‘gross incompetence’ lawsuit against Federal Reserve Chair Jerome Powell
