On 12/8, White House spokesperson Karoline Leavitt said that President Donald Trump is considering suing Federal Reserve (Fed) Chair Jerome Powell over his management of the Fed's headquarters renovation in Washington.

Trump previously mentioned this in a post on Truth Social. "I am considering letting a big lawsuit be brought against Powell. He has been terrible at managing the Fed's building renovations. 3 billion USD for what should have been a 50 million USD fix-up. Not good," he wrote.

President Trump (left) and Chair Powell at the Fed's headquarters in Washington on July 24. Photo: Reuters

President Trump (left) and Chair Powell at the Fed's headquarters in Washington on July 24. Photo: Reuters

White House officials said they are investigating the renovation of two historic Fed buildings. They believe mismanagement and potential fraud inflated costs. The project is also considered ostentatious and inappropriate.

The president visited the project a few weeks ago and argued with Powell on camera about the renovation costs.

Fed documents show the initial estimated cost was 1.9 billion USD, but it has now risen to 2.4 billion USD. The Fed attributes the increased costs to rising labor and material prices, as well as unforeseen challenges.

The president's latest statement suggests escalating tension between him and Powell. Over the past few months, Trump has repeatedly pressured the Fed to lower interest rates. On 12/8, he again called Powell "slow-moving" and said the "damage done by the slow-moving interest rate cuts is immeasurable".

In its late July meeting, the Fed held its benchmark interest rate at 4.25-4.5%. The Fed held off on action due to uncertainty about the economic outlook. It acknowledged risks to both inflation and employment and wants to wait until the trends in these two factors become clearer.

Ha Thu (according to Reuters)