Trump Again Demands Rate Cut, Says Considering Allowing Lawsuit Against Jerome Powell Over Fed Building Project

(MENAFN- Live Mint) US President Donald Trump took aim at Federal Reserve Chair Jerome Powell on Tuesday (August 12), urging him to lower interest rates immediately. Writing on Truth Social, Trump said:“Jerome 'Too Late' Powell must NOW lower the rate. Steve 'Manouychin' really gave me a 'beauty' when he pushed this loser.”

Trump accused Powell of consistently acting too slowly on monetary policy , claiming the economic damage was“incalculable.” He added:“The damage he has done by always being Too Late is incalculable. Fortunately, the economy is sooo good that we've blown through Powell and the complacent Board.”

Possible lawsuit over fed building project

The President also said he was considering allowing a“major lawsuit” against Powell over what he described as mismanagement of the Federal Reserve building renovation project.

“I am, though, considering allowing a major lawsuit against Powell to proceed because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings,” Trump wrote.

Cost overrun allegations

Trump criticised the cost of the renovation , alleging a massive overrun.

“Three Billion Dollars for a job that should have been a $50 Million Dollar fix up. Not good!” he said.

Trump narrows Fed Chair shortlist to four, ongoing criticism of Powell

Trump said on Tuesday (August 6) that he has narrowed his list of potential candidates for Federal Reserve chair to four as he considers a successor to Jerome Powell.

Federal Reserve's two vice chairs , Michelle Bowman and Philip Jefferson, along with Dallas Fed President Lorie Logan, are also reportedly being considered to lead the central bank when the chair position opens next year.

Other candidates include Kevin Hassett, a close economic adviser to Trump, Fed Governor Christopher Waller, economist Marc Sumerlin, and former Fed officials Kevin Warsh and James Bullard.

The announcement comes amid Trump's sustained criticism of Powell. Powell's term ends in May 2026, but Trump has openly mused about replacing him earlier, despite a suggestion that a Fed chair can only be removed for cause rather than policy disagreements.

Trump has also accused Powell of mismanaging the Fed's billion renovation project, though he has said it is“highly unlikely” he will fire him.

The President has recently floated the idea of the Fed's Board of Governors taking full control of the central bank from Powell .

Trump, Powell spar over Fed renovation costs

After months of criticism of Powell , Trump escalated his attacks on July 25 with a highly unusual visit to the Fed's Washington headquarters, accusing Powell of overseeing runaway costs for the central bank's renovation project.

Wearing hard hats, the two men toured the overhaul of the Fed building and its adjacent offices, a project approved in 2017. Trump alleged the true price tag had climbed to $3.1 billion - a claim Powell countered .

The tense exchange marked a new front in Trump's campaign to push Powell toward lowering interest rates , which the President argues would spur homebuying and cut government borrowing costs.

Also Read | Who's next to chair Fed after Powell? Trump admin eyes potential candidates

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