Trump Threatens 'Major Lawsuit' Against Powell

President Trump is weighing a lawsuit against Federal Reserve Chair Jerome Powell over the Fed's costly renovation project, a move that would escalate a long-simmering feud. Trump floated the idea on Truth Social, saying he was "considering allowing a major lawsuit against Powell to proceed because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings," per CNN. Trump, upset that the Fed has not lowered interest rates, claims the cost of the renovation has reached $3.1 billion, while the Fed puts it at $2.5 billion. The Federal Reserve declined to respond to the prospect of legal action.

The situation may intersect with a possible criminal investigation. Rep. Anna Paulina Luna previously referred Powell to the Justice Department for perjury charges, accusing him of giving misleading testimony to lawmakers about the project's costs and timeline, per Fox News. The Fed, in response, released additional documentation to clarify Powell's earlier statements. Trump's latest threat adds another layer to the ongoing feud between Trump and Powell, whom Trump again urged to lower interest rates on Tuesday. Trump has previously threatened to fire the Fed chair, though he recently signaled Powell would finish his term, which ends in May. This attack, however, could be meant to show cause for his possible firing.