Trump threatens to sue the Federal Reserve Chairman Powell

president Donald Trump On Tuesday, he threatened to allow a “major lawsuit” against Federal Reserve president Jerome Powell To follow up, escalate its pressure on Central Bank Cutter Useful interest rates.

Trump said in a Social truth After the lawsuit is linked to the Powell Administration for the renovations of the price Federal Reserve headquarters In Washington, DC, which was previously criticized by the president.

Trump did not say when this lawsuit could be filed or from.

“Jerome” is very late, “it should now reduce the average Powell.”

Trump wrote, referring to the Treasury Secretary in the first term. Stephen Mnuchin After encouraging him to nominate Powell as Lva President in 2017.

“The damage that it has always caused is too late to be banned. Fortunately, the economy is so good that we explode through Powell and the Satisfaction Council,” Trump claimed.

“I, however, given that a major lawsuit is allowed against Powell to move forward because of the terrible and uncharacious job he did in the management of federal buildings.”

“Three billion dollars for a job should have been a $ 50 million repair. Not good!” books.

White House press secretary Caroline Levit refused to share more about the possible lawsuit when requesting the clarification later on Tuesday.

“He is thinking about a lawsuit, and I will not talk about it more than that. I will allow the president to do this,” Levitte said.

The Federal Reserve refused to comment on the Trump post.

Powell and her first Defend Among two historical buildings in the capital, which includes the central bank, and explained the reason for the high costs during the projects.

Powell returned to Trump last month when the president visited the construction site and claimed that the renewal costs of $ 3.1 billion.

Powell said: “I did not hear that from anyone,” Powell said.

Trump has popped up against Powell for several months, pressing the central bank to reduce interest rates quickly with multiple points.

Trump claims to do this would provide the United States with huge amounts of money by limiting the cost of borrowing to finance government operations.

After raising the rate of federal funds in 2022 in the wake of the Covid-19s, the Federal Reserve reduced interest rates several times in 2024, which is the full final year of the president Joe BidenThe term in the office.

But it has kept the rates fixed throughout 2025, and challenged Trump’s demands.

In Congress in July, Powell said that the federal reserve would have already been reduced this year if Trump did not implement his specialty. Customs tariff policy.

Federal reserve officials in June indicated that they expect price cuts this year.

Traders are currently expecting Reducing a quarter of a point rate after the Federal Market Committee meeting in September. Expectations for more discounts increased after FOMC meetings in October and December.

– Erin DOHERTY of CNBC contributed to this report.