U.S. President Donald Trump has said he is thinking about suing Federal Reserve Chair Jerome Powell. This comes as Trump pushes Powell to lower interest rates.
Trump made these comments shortly after the July Consumer Price Index (CPI) data was released. The CPI data showed inflation was lower than expected, with a 2.7% increase year-over-year and a monthly drop to 0.2%.
Trump took to his social media platform, Truth Social, where he called Powell’s handling of the Federal Reserve building renovations “horrible and grossly incompetent.” He pointed out that the renovation costs reached $3 billion, which he said should have only cost $50 million.
Trump said, “Three Billion Dollars for a job that should have been a $50 Million Dollar fix up. Not good!” This issue has added pressure on Powell, who was also referred to the Department of Justice over these renovation costs.
Alongside this, Trump urged Powell to cut interest rates immediately. He said Powell has been “Too Late” and that the damage caused by this delay is “incalculable.” Despite the criticism, Trump said the economy is strong enough to withstand the Fed’s slow actions. He claimed that tariffs are not the cause of inflation, saying consumers are not even paying them. Trump posted that massive amounts of cash are flowing into the U.S., helping the economy.
Stephen Miran, Trump’s nominee for the Fed Board, also commented on the CPI data during a CNBC interview. Miran said he was pleased to see inflation “well behaved” and that there is no evidence of inflation at the overall level. He added that CPI inflation has stayed around 1.9% annually since Trump took office, which he described as normal. Miran also said there is no proof that tariffs have caused inflation.
Notably, Trump visited the Federal Reserve last month to check the renovations and again asked for a rate cut. His latest remarks follow the recent CPI report and ongoing debates about inflation and monetary policy.
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