• Trump threatens a major lawsuit against Fed Chair Jerome Powell.
• The lawsuit concerns renovation cost overruns at the Federal Reserve.
• Trump demands immediate interest rate cuts amid ongoing economic concerns.

President Donald Trump has suggested he might allow a “major lawsuit” against Federal Reserve Chair Jerome Powell regarding the increasing costs of renovations at the Fed’s headquarters. Trump took to Truth Social on August 12 to voice his frustrations about the project, which he claims has spiraled to $3 billion from original estimates, labeling Powell’s management as “horrible” and “grossly incompetent,” according to Newsweek and Reuters.

During a post on his social media platform, Trump emphasized that Powell must now act by lowering interest rates, stating that the delays have caused “incalculable” damage. He criticized the Federal Reserve’s decision to keep rates steady since the last cut in December and urged for immediate action to boost economic growth, as reported by Channel News Asia and India Times.

The renovation project, aimed at modernizing the Fed’s aged infrastructure, has faced scrutiny for its escalating costs and has been attributed by Trump to Powell’s incompetence. While the initial estimate was around $1.9 billion, the figure has reportedly risen to approximately $2.5 billion as construction progresses, according to South China Morning Post and Le Monde.

Amid these disputes, Trump has indicated a willingness to replace Powell due to what he perceives as a failure in timely economic management. He continues to leverage public sentiment against Powell as a part of a broader political strategy, as noted by Al Jazeera and Dawn.