It looks like President Donald Trump is very displeased with Federal Reserve Chair Jerome Powell. Trump told reporters he was considering bringing a lawsuit against Federal Reserve Chair Jerome Powell for “gross incompetence” as he complained about renovations to the central bank’s headquarters.
“We’re thinking about bringing a suit against Powell for incompetence. Because think of it, these aren’t outstanding buildings. These are small buildings,” Trump said during a press conference with Israeli Prime Minister Benjamin Netanyahu.
“It’s gross incompetence against Powell. And it was his baby,” Trump said of the construction project. “And the guy’s just incompetent. There’s nothing you can do about it.”
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Trump had earlier this year threatened to bring a lawsuit against Powell, though he did not provide details at the time. The president has fixated on the cost of renovations to Federal Reserve buildings, accusing Powell of allowing the cost to balloon.
“I would fire him. I’d love to fire him. But we’re so close, you know. But maybe I still might,” Trump said.
Trump also expressed frustration with the Federal Reserve’s monetary policy, particularly interest-rate decisions, and suggested Powell should resign or be removed. Throughout 2025, Trump has repeatedly criticized Powell and the central bank, accusing it of mismanaging the economy and overspending on renovations.
Powell has played a central role in U.S. monetary policy, including setting interest rates and managing the nation’s response to economic crises, such as inflation surges and financial disruptions. Powell is known for his pragmatic, cautious approach, balancing economic growth with inflation control, while maintaining the Fed’s independence from political influence.
The ongoing tensions between President Trump and Federal Reserve Chair Jerome Powell highlight the broader challenges inherent in the relationship between the executive branch and the nation’s central bank. The Federal Reserve operates with a high degree of independence to manage monetary policy effectively, yet it often exists under intense political scrutiny, particularly during periods of economic uncertainty.
Disagreements between the president and the Fed are not unusual, but the public intensity of Trump’s criticism underscores the difficulty of balancing political priorities with long-term economic stability.
Powell’s role requires making decisions that can be unpopular in the short term but are aimed at sustaining the overall health of the economy. Navigating interest rates, inflation, and other macroeconomic indicators involves complex judgment calls, often under conditions of significant uncertainty. While the president may express dissatisfaction with these outcomes, the Fed’s independence is crucial to maintaining credibility in financial markets and protecting the integrity of U.S. economic policy.
The scrutiny of high-profile projects, such as the renovations of Federal Reserve buildings, also reflects the symbolic weight of federal institutions and the expectation of efficient management of public resources. How leaders respond to criticism, both internally and publicly, can influence perceptions of competence and institutional trust.