What to know
- July inflation came in at 2.7%, slightly below the 2.8% forecast.
- President Trump urged Fed Chair Jerome Powell to cut rates and said he is considering a “major lawsuit” tied to the Fed building renovation.
- Rep. Anna Paulina Luna said she would criminally refer Powell to the DOJ over alleged false statements about renovation costs.
President Trump escalated his criticism of Federal Reserve Chair Jerome Powell after new data showed inflation holding at 2.7% in July, just under the 2.8% Wall Street expected. He said rates should be cut and tied his warning to concerns about the Federal Reserve’s headquarters renovation.
In a Truth Social post, Trump wrote: “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!”
Trump’s remarks follow months of steady interest rates as the Fed weighs inflation risks. He also criticized former Treasury Secretary Steve Mnuchin for recommending Powell, while arguing the central bank’s renovation has ballooned to several billion dollars for what he described as a project that should have been far less expensive.
Scrutiny of the renovation has already moved to Capitol Hill. Last month, Rep. Anna Paulina Luna said she would be criminally referring Powell to the Justice Department. Citing a June 25 appearance before the Senate Banking Committee, Luna wrote, “On June 25, 2025, Chairman Powell provided testimony under oath before the U.S. Senate Committee on Banking, Housing, and Urban Affairs regarding the renovation of the Federal Reserve’s Eccles Building. In his statements, he made several materially false claims,” according to her letter.
Luna also pointed to a separate exchange over cost overruns. “Separately, in a letter to the Office of Management and Budget (OMB) Director Russell Vought, Chairman Powell characterized the changes that escalated the cost of the project from $1.9 billion to $2.5 billion as minor. However, documents reviewed by congressional investigators indicate that the scope and cost overruns of this project were neither minor in nature nor in substance,” she wrote.
Trump’s post signals he is prepared to keep pressing Powell on both interest rates and the renovation spending as inflation data remains in focus.
