US President Donald Trump is reportedly considering suing Federal Reserve Chair Jerome Powell over the renovation plans of the central bank’s headquarters. According to White House press secretary Karoline Leavitt, Trump wrote on his social media platform that he was “considering allowing a major lawsuit against Powell to proceed” due to what he perceives as Powell’s incompetence in managing the renovation project.
The Fed has declined to comment on the potential move. The controversy surrounding Powell’s testimony during the renovation plans investigation could be a possible basis for Trump’s case, although it is unclear whether the allegations would hold up in court.
Trump had previously threatened to fire Powell over his refusal to lower interest rates, but recently expressed willingness to allow him to stay on as head of the central bank until May. However, Trump has also stated that he intends to announce his choice for Powell’s successor months earlier than usual.
Firing Powell would be a complex process due to Senate-confirmed members only being eligible for dismissal “for cause.” Trump is focusing on the multibillion-dollar renovation project as a potential reason for termination, citing an estimated cost of $50 million. If Trump proceeds with the lawsuit, Powell is likely to contest it in court and may ultimately take his case to the Supreme Court.
Trump has announced plans to nominate Stephen Miran, chair of the Council of Economic Advisers, to fill a newly opened position on the Fed’s Board of Governors. However, he is also considering former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, and Fed Governor Christopher Waller for the same role.
Source: https://edition.cnn.com/2025/08/12/economy/trump-lawsuit-fed-chair-powell