President Donald Trump announced Monday that he is considering filing a lawsuit alleging "gross incompetence" against Federal Reserve Chairman Jerome Powell, citing massive cost overruns associated with renovating the Federal Reserve headquarters in Washington, D.C.
"They don't know what they're doing. They're way over budget," Trump declared, renewing his long-standing criticism of the Fed chairman he first appointed during his initial term in office.
A Pattern of Fiscal Irresponsibility?
The president's frustration centers on what he views as a glaring example of bureaucratic waste at the nation's central bank—the very institution responsible for maintaining economic stability and supposedly exercising fiscal prudence.
While the Federal Reserve operates with a degree of independence from the executive branch, Trump has made clear that such independence does not shield officials from accountability when taxpayer interests are at stake.
"We're looking at it very seriously. When you have this kind of gross incompetence, there have to be consequences," Trump stated.
The renovation project at the Fed's Eccles Building has reportedly ballooned well beyond initial estimates, a scenario all too familiar to Americans who watched government spending spiral out of control during the Biden administration.
Trump's Ongoing Battle With the Fed
The threat of legal action represents the latest chapter in Trump's contentious relationship with Powell. During his first term, Trump frequently criticized the Fed chairman for interest rate decisions he believed hampered economic growth. Now back in the Oval Office after his decisive 2024 victory, the president appears unwilling to let Powell operate without scrutiny.
Conservative economists have long argued that the Federal Reserve lacks sufficient oversight, operating as an unelected body with enormous power over the American economy. Trump's willingness to challenge Powell directly resonates with voters who sent him back to Washington with a mandate to drain the swamp and hold unaccountable bureaucrats responsible.
Accountability Coming to Washington
Whether a lawsuit materializes remains to be seen, but the message from the White House is unmistakable: the days of unchecked spending and zero accountability in Washington are over.
The president's aggressive stance signals that no institution—regardless of its traditional independence—will be immune from scrutiny when American tax dollars are being mismanaged. For supporters who elected Trump to shake up the establishment, this latest confrontation is exactly the kind of leadership they voted for.