Former President Donald Trump announced on August 12, 2025, via his social media platform Truth Social, that he is considering allowing a "major lawsuit" against Federal Reserve Chair Jerome Powell. Trump's statement stems from his strong disapproval of the escalating costs associated with the Federal Reserve's headquarters renovation project and his ongoing criticism of Powell's monetary policy. Trump accused Powell of a "horrible, and grossly incompetent" job managing the construction of the Federal Reserve buildings, claiming the project should have cost $50 million but is instead costing around $3 billion, with some reports citing figures up to $3.1 billion.
The Federal Reserve's renovation project, which initially had an estimated cost of $1.9 billion, has seen its budget increase to approximately $2.5 billion. The central bank attributes these cost increases to unforeseen challenges, including the discovery of more asbestos than initially anticipated, the necessity for more extensive structural work, changes to original building designs due to consultations with review agencies, and discrepancies between original estimates and actual costs of materials, equipment, and labor. The renovation aims to address critical infrastructure needs, such as updating obsolete plumbing, electrical, HVAC, and fire suppression systems, many of which date back to the buildings' original construction in the 1930s. The project also includes remediation of hazardous materials like asbestos and lead, and major structural work to meet modern safety and accessibility standards. The Federal Reserve maintains that the project complies with plans approved by the National Capital Planning Commission (NCPC) in 2020 and 2021. Trump's criticisms also encompass his broader dissatisfaction with the Federal Reserve's monetary policy, as he continues to advocate for lower interest rates to stimulate economic growth, highlighting a recurring tension between the executive branch and the Federal Reserve regarding the central bank's independence.