U.S. President Donald Trump warns of a major lawsuit against Federal Reserve Chair Jerome Powell, citing mismanaged $2.5B renovations and demanding immediate interest rate cuts.
📢 The Breaking News
U.S. President Donald Trump has intensified his long-running clash with Federal Reserve Chair Jerome Powell, claiming he may launch a “major lawsuit” over a ballooning renovation bill for the Fed’s Washington D.C. buildings.
Originally budgeted at $1.9 billion, the renovation is now expected to cost around $2.5 billion—a surge Trump says reflects “gross incompetence.”
🔍 Trump’s Key Complaints
- Cost Overruns:Â From $1.9B to $2.5B, with taxpayers footing the bill.
- Economic Pressure: Trump tied the lawsuit threat to his demand that the Fed cut interest rates immediately.
- Policy Clash: This adds to his long-standing battle over the Fed’s independence and monetary policy direction.
⚖️ Legal Reality Check
Experts doubt the lawsuit will succeed. The Federal Reserve operates independently, with legal insulation from direct presidential interference. Courts have historically resisted political attempts to control Fed operations.
⏳ Why This Matters Now
- Market Timing: The threat comes weeks before the Fed’s next rate decision.
- Political Strategy:Â Even if unlikely to win in court, the move keeps pressure on Powell and the central bank.
- Investor Impact: Markets, including cryptocurrencies like XRP, reacted strongly to Trump’s aggressive stance.
đź“Š Quick Recap Table
| Aspect | Details |
|---|---|
| Lawsuit Target | Jerome Powell, Fed Chair |
| Main Trigger | $2.5B building renovation cost |
| Original Budget | $1.9B |
| Trump’s Demand | Immediate interest rate cuts |
| Legal Chances | Low, due to Fed independence |
| Market Mood | Volatile, crypto traders eye opportunity |
🗨️ Final Word
Whether the lawsuit materializes or not, Trump’s threat is another flashpoint in his power struggle with the Federal Reserve. With rate decisions looming, the standoff between the White House and America’s central bank could influence both Wall Street and Main Street in the weeks ahead.