President Donald Trump launched another broadside against Federal Reserve chair Jerome Powell Monday, saying he is considering suing the central banker for “gross incompetence.”
Trump questioned spending on the Fed’s building project and said he would “love to fire Powell” given the chance
Chip Somodevilla/Getty Images
President Donald Trump launched another broadside against Federal Reserve chair Jerome Powell Monday, saying he is considering suing the central banker for “gross incompetence.”
Trump said he would like to fire Powell during a press conference with Israel’s Prime Minister Benjamin Netanyahu, calling the Fed chief a “fool” and railing against renovations to the central bank’s headquarters. He said: “We’re thinking about bringing a suit against Powell for incompetence. Because think of it, these aren’t outstanding buildings. These are small buildings.”
“It’s gross incompetence against Powell. And it was his baby… And the guy’s just incompetent. There’s nothing you can do about it,” he said, referring to the price of the renovations. Trump claimed in the press conference they will cost $4.1 billion. Powell has publicly said they will be $2.5 billion.
“He’s an absolute fool who’s building a new Federal Reserve, or he’s doing a renovation of a building,” Trump added. “It’s the highest price in the history of construction.”
“Gorgeous monuments are built for a much smaller price,” he said. “So we’re thinking about bringing a gross incompetence, what’s called a gross incompetence lawsuit, it’s gross incompetence, against Powell… I’d love to fire him. Maybe I still might.”
He also talked up the state of the U.S. economy, claiming it is doing well “despite the fact we have a fool at the Federal Reserve.” He added: “Biden reappointed him. It’s too bad. You would have thought he wouldn’t have done that.” Trump first appointed Powell himself in 2018.
Economic measures in the U.S. have been patchy of late. On one hand, strong third quarter growth has given Trump something to boast about, but inflation remains persistently above target and several gauges of the jobs market have indicated that it is getting weaker.
Trump will appoint Powell’s successor in early 2026. The President has tried to influence the Fed’s policymaking for months, lambasting Powell as a “numbskull” for not cutting rates as fast as he would like.
His comments came after the Fed in December cut its benchmark interest rate by 25 basis points for the third consecutive meeting, to a range of 3.5%-3.75%. Part of that was based on signs of a weakening labor market, despite inflation running well above the Fed’s 2% target.
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