Trump Threatens Powell With Lawsuit Over Fed HQ Renovations, Renews Call For Rate Cuts

Trump on Tuesday threatened to allow a “major lawsuit” against Federal Reserve Chair Jerome Powell over the cost of renovations at the Fed’s Washington, D.C., headquarters, according to CNBC. He renewed personal attacks on Powell on Truth Social, demanded immediate rate cuts, and claimed the renovations cost $3 billion instead of $50 million. The Federal Reserve declined to comment on Trump’s post. Powell and the Federal Reserve have defended the renovations of two historic D.C. buildings that house the central bank, explaining the reasons for rising costs. Last month, Powell disputed Trump’s claim during the president's visit that the projects had exceeded $3.1 billion. Trump has pressed the Fed to slash rates by multiple percentage points, arguing it would save the U.S. vast sums. The Fed has held rates steady in 2025 despite earlier cuts in 2024 and signaled two reductions this year. Traders expect a quarter-point cut in September, with potential further cuts in October and December.