‘Too Late’ Powell: Donald Trump hints at letting lawsuit against Fed Chair proceed

U.S. President Donald Trump and Jerome Powell

US President Donald Trump said on Tuesday that he is "considering allowing a major lawsuit against" the US central bank chief to proceed, as he renewed pressure on Federal Reserve Chair Jerome Powell to lower interest rates.

Trump wrote on his Truth Social platform," 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!"

Donald Trump added that he is thinking of allowing a lawsuit taking aim at Powell's oversight on the Fed's renovations, but did not offer more details.

Trump has repeatedly lashed out at Powell this year over the Fed's decisions to keep interest rates steady since its last cut in December. The jury is still out on whether Trump's latest tariffs will have a one-off or longer-term impact on inflation, but the president has regularly pointed to benign data to urge for rate reductions to boost the economy.

Shortly after government data was released Tuesday, showing that consumer inflation stayed unchanged at 2.7 percent in July, Trump wrote on social media that Powell "must now lower the rate."

He also called the Fed's leadership "complacent." Trump has openly floated the idea of ousting Powell over cost overruns for the renovation.

While the US leader says the price of the makeover was $3.1 billion, reiterating this figure in his social media post on Tuesday, Powell has been quick to correct Trump in the past.

The cost has been put at $2.5 billion, but Trump's higher number includes work on another building that Powell maintains was completed previously.

On Tuesday, Trump said Powell was doing a "horrible" job in managing the Fed's revamp.