U.S. President Donald Trump has hinted he may move forward with a lawsuit against Federal Reserve Chair Jerome Powell over what he calls excessive renovation costs at the Fed’s headquarters, even as he renews his push for an interest rate cut.
In a Truth Social post, Trump criticized Powell’s handling of the $3 billion renovation project — which he claims should have been a simple $50 repair — calling it “horrible” and “grossly incompetent.” Powell has already faced a criminal referral to the Department of Justice over perjury allegations related to these costs.
Trump’s remarks came shortly after the release of July CPI data, which showed inflation easing to 2.7% year-over-year (below expectations) and monthly CPI falling to 0.2%. He argued the figures prove that his tariffs are not driving inflation, claiming consumers aren’t paying the tariffs and that the U.S. is seeing strong capital inflows. The president insisted Powell must cut rates immediately, accusing the Fed of causing “incalculable” damage by acting “too late.”
Trump’s Fed Board nominee, Stephen Miran, echoed the optimism in a CNBC interview, saying inflation remains “well behaved” and has averaged 1.9% annually since Trump took office. He also dismissed any evidence of tariff-driven inflation, noting CPI data is rarely revised and aligns with the latest jobs report.
