Trump threatens Jerome Powell with lawsuit over Fed headquarters renovation dispute

PALM BEACH, FLORIDA: President Donald Trump has intensified his public feud with Federal Reserve Chair Jerome Powell, threatening to sue him for what he called gross incompetence and repeating that he may still fire him before his term ends.

The POTUS also indicated that he plans to name Powell’s successor as early as January next year.

Federal Reserve Chair Jerome Powell arrives to speak during an Economic Club of Chicago event on April 16, 2025, in Chicago, Illinois (Vincent Alban/Getty Images)

Trump threatens Jerome Powell with a gross incompetence lawsuit

During his press conference with Israeli Prime Minister Benjamin Netanyahu on Monday, December 29, Trump said that he plans to sue Powell because the cost of renovating the Federal Reserve building has gotten out of control. Trump said the cost was north of $4 billion now — about $1.5 billion more than projected. 

“It’s going to end up costing more than $4 billion — $4 billion! It’s the highest price of construction,” Trump said. “Again, Democrats — the highest price of construction per square foot in the history of the world."

"Gorgeous monuments are built for a much smaller price. So we’re thinking about bringing… what’s called [a] gross incompetence lawsuit," the Republican leader said. 

This isn’t the first time Trump has made this threat. In August, Trump wrote on Truth Social that he’s “considering allowing a major lawsuit against Powell to proceed,” arguing that his management of the renovation project has been “grossly incompetent.”

Trump also called him “too late” because “he’s always too late with interest rates.” The president has often slammed Powell for not moving quickly enough in his view to cut rates.

Trump slams Biden for reappointing Jerome Powell

During the press conference, Trump also slammed former President Joe Biden for reappointing Powell in 2022. Trump initially nominated Powell to lead the Federal Reserve during his first term in 2017.

“I mean, Biden reappointed him, it's too bad, you would have thought he wouldn't have done that, but he's an absolute fool who's building a new Federal Reserve, or he's doing a renovation of a building,” Trump said.

Trump hints at potential successors to Jerome Powell

Even though Powell’s term is set to end next year, Trump once again threatened to fire him.

“I would fire him. I’d love to fire him. But we’re so close, you know. But maybe I still might,” Trump said.

Last month, too, Trump said that he’d “love to fire his a**.”

While it’s still unclear who Trump will name as Powell’s successor, he told The Wall Street Journal earlier this month that he’s considering former Federal Reserve Board member Kevin Warsh and National Economic Council Director Kevin Hassett.

“I think you have Kevin and Kevin. They’re both—I think the two Kevins are great,” he said. “I think there are a couple of other people that are great.”