President Donald Trump has threatened to file a major lawsuit against Federal Reserve Chair Jerome Powell over the rising costs of renovating two historic Fed buildings. The project, valued at $3 billion, is part of a multi-billion-dollar modernization effort aimed at saving money by consolidating most operations.
The Federal Reserve attributes higher-than-expected costs to redesigns, discrepancies between initial estimates and actual costs, and unforeseen issues such as asbestos and toxic soil contamination. Trump accused Powell of being “grossly incompetent” in managing the construction project.
Trump has repeatedly clashed with Powell over his stance on interest rates, with the Fed holding off cutting rates due to concerns about inflation fueled by Trump’s tariffs. The headline rate of CPI inflation held steady at 2.7%, but core inflation accelerated to 3.1%.
Experts warn that rising core inflation data is a red flag, and some anticipate another rate cut in September. However, analysts expect a sharp downturn in the data before such a move can occur.
The Federal Open Market Committee’s key rate influences interest rates across the economy. A rate cut would mean lower borrowing costs for consumers.
Source: https://www.newsweek.com/trump-fed-powell-lawsuit-buildings-2112280