This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact The Epoch Times Reprints.
President Donald Trump and Federal Reserve Chair Jerome Powell tour the Federal Reserve’s $2.5 billion headquarters renovation project in Washington on July 24, 2025. Chip Somodevilla/Getty Images
President Donald Trump on Monday renewed his threat to file a lawsuit against Federal Reserve Chair Jerome Powell for what he describes as “gross incompetence” due to Powell’s alleged management of renovations at the Fed’s Washington headquarters.
Trump also told reporters that he plans to unveil his pick for Powell’s successor at some point in January. Powell’s term ends in May.
The latest comments revisit a longstanding dispute regarding the Federal Reserve’s $2.5 billion renovation of its Marriner S. Eccles Building.
The project, which encompasses repairs, upgrades, and modernization, has drawn fire from the Trump administration for spiraling costs.
In July, Trump viewed the construction site and publicly questioned Powell’s cost estimates. The president estimated the total at $3.1 billion, alleging that overruns had ballooned. Powell said that the figure remained at $2.5 billion and that the project was essential for the central bank’s operations.
Office of Management and Budget Director Russ Vought earlier inquired in a letter to Powell about the spending, highlighting a $700 million budget overrun. Powell defended the expenditures as essential, highlighting in a letter that the renovations addressed longstanding infrastructure needs.
The Trump administration has not formally accused Powell of fraud but has pointed to the project as evidence of inefficiency. The president threatened in August to allow a “major lawsuit” against Powell, alleging him to be incompetent in overseeing the renovations, while also demanding interest rate cuts. The Federal Reserve, meanwhile, has cited Trump’s economic policy as a reason for caution on interest rate policies.
“We are focused on separating the signal from the noise as the outlook evolves,” Powell said at the time. “We do not need to be in a hurry, and we are well-positioned to wait for greater clarity. Policy is not on a preset course.”
Federal Reserve officials have said that the project is above board and necessary. A Fed statement in July detailed costs for rehauling facilities and structural work, and affirmed compliance with oversight protocols.
Trump nominated Powell in 2017 during his first term, praising him as “strong, committed, and smart.” Trump later disagreed with him over monetary policy. The president said in 2024 that he would not remove Powell before the end of his term in 2026.
Potential nominees include Treasury Secretary Scott Bessent, former Fed board member Kevin Warsh, and economic adviser Kevin Hassett.
Fed chairs serve fixed terms. Removal requires cause, which generally does not include management disputes.
An investment firm, Azoria Capital, sued Powell and other Federal Reserve officials in July over unrelated closed-door meetings in a case focusing on transparency at the Fed.
Kimberly Hayek is a reporter for The Epoch Times. She covers California news and has worked as an editor and on scene at the U.S.-Mexico border during the 2018 migrant caravan crisis.
