Trump threatens ‘major lawsuit’ against Fed Chair Powell
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Trump Threatens Lawsuit Against Fed Chair Powell
Former President Donald Trump said he may allow “a major lawsuit” against US Federal Reserve Chair Jerome Powell, criticising both Powell’s interest rate decisions and ongoing renovations at the Fed’s Washington headquarters. (Source: Reuters)
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Renovation Dispute
Trump accused Powell of mishandling a costly headquarters renovation, claiming it will cost $3.1 billion. Powell, however, says the actual figure is $2.5 billion, with Trump’s estimate including unrelated past work.
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Monetary Policy Pressure
Trump has repeatedly urged the Fed to cut rates, slamming Powell for “always being too late.” He argues that lower borrowing costs are needed to boost the economy amid his administration’s broad tariffs.
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Inflation Data as Leverage
After new government data showed consumer inflation unchanged at 2.7% in July, Trump took to social media to demand that Powell “must now lower the rate.” He also called the Fed leadership “complacent.”
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Tariffs and Inflation Outlook
The Fed is monitoring whether Trump’s tariffs will have only a temporary impact or lead to longer-term inflationary pressures. Policymakers remain cautious, noting that tariff effects take time to appear in consumer prices.
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Personal Criticism of Powell
Beyond policy disputes, Trump accused Powell of doing a “horrible” job in managing the Fed’s revamp and reiterated his dissatisfaction with Powell’s overall performance as central bank chief.
(Disclaimer: This slideshow has been sourced from Reuters)
(Disclaimer: This slideshow has been sourced from Reuters)