President Donald Trump is weighing legal action against Federal Reserve Chair Jerome Powell, White House press secretary Karoline Leavitt said Tuesday.
The comments followed Trump’s social media post earlier in the day, where he wrote that he was “considering allowing a major lawsuit against Powell to proceed.” He accused Powell of doing a “horrible, and grossly incompetent” job in overseeing the renovation of the Fed’s headquarters, claiming it should have been a “$50 million fix-up” instead of a multibillion-dollar project, local media reports said.
Trump’s potential lawsuit may be similar to a criminal investigation sought by Republican Rep. Anna Paulina Luna, who alleges Powell gave false testimony to lawmakers in June about the renovation plans. Since then, the Fed has released more information clarifying Powell’s remarks under oath.
Jerome Powell Repeatedly Denied Donald Trump’s Calls to Slash Interest Rates
The legal threat comes amid Trump’s frustration over the Fed’s refusal to cut interest rates. In the past, Trump has even threatened to fire Powell over monetary policy decisions. Recently, however, he said Powell would remain Fed chair until his term ends in May, though Trump plans to announce a replacement months earlier than usual, reports said.
Removing Powell would be legally difficult. Senate-confirmed Fed board members can only be dismissed “for cause,” meaning the president would need to prove misconduct or incapacity. Trump appears to be focusing on the costly building renovation as a potential reason for removal.
Donald Trump Could Remove Federal Reserve Chair Jerome Powell
Last month, Trump and Powell toured the Fed’s construction site together. At the time, Trump seemed to accept the scope and cost of the work, saying, “I just would like to see it get finished.” Now, however, he is criticizing the expense and suggesting it is grounds for legal action.
If Trump attempts to fire Powell, the Fed chair is expected to challenge the move in court. Legal experts believe such a dispute could ultimately be decided by the Supreme Court, reports added.
Also Read: Federal Reserve’s Chair Powell Under Pressure After Renovation Controversy
