Trump Considers Lawsuit Against Fed Chair Powell Over Renovation Costs
President Trump is contemplating a lawsuit against Federal Reserve Chair Jerome Powell, criticizing the high cost of the Fed's headquarters renovation and pressuring him to cut interest rates.
Trump weighing lawsuit against Powell over Fed building renovation
Washington Examiner
Overview
- President Trump is considering a major lawsuit against Federal Reserve Chair Jerome Powell, primarily over the alleged excessive costs of the Fed's headquarters renovation project.
- Trump claims the Federal Reserve building renovation should have cost around $50 million, significantly less than the actual expenditure, leading to his legal threat.
- The potential lawsuit adds to Trump's ongoing criticism of Powell, which includes pressure to cut interest rates, highlighting a broader dispute over the Fed's actions.
- During a tour of the Federal Reserve headquarters, Chair Powell reportedly disputed Trump's claims regarding the renovation expenses, further escalating the disagreement.
- This development highlights ongoing tensions between President Trump and the Federal Reserve, as Trump continues to exert pressure on the central bank's policies and expenditures.
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FAQ
President Trump is considering a lawsuit due to what he claims are excessive renovation costs of the Federal Reserve headquarters, which he believes should have been around $50 million but escalated to over $2.5 billion, leading to his legal threat.
The renovation involves a complete overhaul of the historic buildings originally constructed in the 1930s, including removal of asbestos and lead, replacement of outdated mechanical, electrical, plumbing, HVAC, and fire systems, and updates to meet modern safety, accessibility, and security codes, which have all driven up costs significantly over initial estimates.
Chair Powell disputed Trump's claims about the renovation costs, stating some figures cited by Trump include past projects and are not related to the current renovation; Powell acknowledged the project would be costly but justified it as necessary.
No, the Federal Reserve finances its renovation through its own funds derived primarily from interest on government securities and fees charged to financial institutions, not taxpayer dollars or congressional appropriations.
The renovation project began planning in 2017 and started construction in 2022, with expected completion in fall 2027, and employees are likely to work from the renovated building beginning March 2028.
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