President Donald Trump is threatening to sue Federal Reserve Chair Jerome Powell over what he calls useless upgrades to the Federal Reserve building that are costing billons of dollars and have no end in sight. He also hammered Powell for his continued refusal to lower interest rates even as the latest numbers show the tariff inflation bump has yet to materialize.
Trump said of Powell on Truth Social: Jerome “Too Late” Powell must NOW lower the rate. Steve “Manouychin” really gave me a “beauty” when he pushed this loser. The damage he has done by always being Too Late is incalculable. Fortunately, the economy is sooo good that we’ve blown through Powell and the complacent Board. I am, though, considering allowing a major lawsuit against Powell to proceed because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings. Three Billion Dollars for a job that should have been a $50 Million Dollar fix up. Not good!
President Trump Threatens a “Major Lawsuit” Against Fed Chairman Jerome Powell and Unleashes Fire On Him After Seeing Latest Inflation Data – The Gateway Pundit
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President Trump is upping the ante against Federal Reserve Chairman Jerome Powell, whose next stop could be in a courtroom.
AS TGP readers know, Powell has stubbornly held interest rates steady for months despite plummeting inflation numbers, claiming the tariffs will possibly reverse the trend. As a result, Americans are having great difficulty affording homes.
On Tuesday, the latest inflation numbers came in. Once again, Powell was proven a fool as inflation held steady at 2.7% in July, shy of the 2.8% Wall Street expected.
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President Donald Trump on Tuesday threatened to file a lawsuit against Jerome Powell, the Chairman of the Federal Reserve, over renovations to the agency’s building.
In a post on Truth Social, the president lambasted Powell over his refusal to lower interest rates and his handling of the renovations to the Federal Reserve’s building.
“Jerome ‘Too Late’ Powell must NOW lower the rate,” Trump wrote. ‘Steve “Manouychin’ really gave me a ‘beauty’ when he pushed this loser. The damage he has done by always being Too Late is incalculable.”
Trump said he is “ considering allowing a major lawsuit against Powell to proceed because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings.”
In the face of economic signals that might justify lowering interest rates, U.S. Federal Reserve Chair Jerome Powell doubled down on his commitment to not lower interest rates despite rising dissent within the Fed itself against Powell’s “leadership. After this decision, calls for his firing and resignation have only increased, though President Trump has not yet responded (though he might by print time).
Powell’s justification for actions that his detractors equate to outright overt sabotage of the U.S. economy was to blame the uncertainty of the effect of Trump’s tariffs. He claimed “Higher tariffs have begun to show through more clearly to prices of some goods, but their overall effects on economic activity and inflation remain to be seen. A reasonable base case is that the effects on inflation could be short-lived—reflecting a one-time shift in the price level. But it is also possible that the inflationary effects could instead be more persistent, and that is a risk to be assessed and managed.”
Jerome Powell holds interest rate steady—and is looking through tariffs by not raising rates– fortune.com
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In a move that everyone was expecting, U.S. Federal Reserve Chairman Jerome Powell disappointed Donald Trump again yesterday by refusing to cut the base interest rate.
Indeed, a hawkish Powell even used the dreaded r-word (“raise”)—having suggested he is responsive enough to calls to “look through” tariff-induced inflation by not increasing interest rates, a notion which likely would have sent the Oval Office into a fury.
While rates held steady at 4.25% to 4.5%, a split among the Federal Open Market Committee (FOMC) is growing, with two members dissenting. This represents the highest level of friction within the FOMC for more than 30 years.
But despite the pressure—both from within the Fed and externally—Powell struck a cautious tone on cutting. For some time analysts have pencilled in a cut in September, the next meeting of the FOMC.
