### Trump Escalates Tensions with Federal Reserve Chair Powell Over Renovation Costs - President Donald Trump has renewed his threats against Federal Reserve Chair Jerome Powell, accusing him of "gross incompetence" regarding the costly renovations of the Federal Reserve's headquarters in Washington, D.C. Trump has indicated he is considering a lawsuit against Powell and has expressed a desire to fire him, referring to him as "Too Late Powell" for not acting swiftly enough on interest rates [https://nypost.com/2025/12/30/business/trump-threatens-to-sue-fed-chair-jerome-powell-for-gross-incompetence-over-costly-building-renovation]. - This latest confrontation comes as Trump prepares to announce a new Fed chair in January, further intensifying the scrutiny on Powell's management of the central bank [https://www.firstpost.com/world/trump-renews-threat-to-use-jerome-powell-for-incompetence-to-name-new-fed-chief-in-january-13963879.html]. ### Breakdown of Trump's Claims and Actions 1. **Allegations of Incompetence**: Trump has accused Powell of mismanaging a $2.5 billion renovation project, claiming it has exceeded budget expectations and is behind schedule [https://www.theepochtimes.com/us/trump-again-threatens-suit-against-fed-chair-powell-over-building-renovation-5964127]. 2. **Legal Threats**: The president has stated he is contemplating a lawsuit against Powell for "gross incompetence," which he believes justifies legal action [https://www.scotsmanguide.com/news/trump-threatens-to-sue-or-fire-fed-chair-powell]. 3. **Potential Dismissal**: Trump has reiterated his desire to fire Powell, suggesting that he may still pursue this option despite previous backlash from the markets regarding such a move [https://www.cnbctv18.com/world/maybe-i-still-might-donald-trump-takes-another-jibe-at-firing-fed-chair-powell-19807470.htm]. 4. **Future Leadership Changes**: Trump has indicated that he will announce a new Federal Reserve chair in January, signaling a potential shift in the central bank's leadership [https://lnginnorthernbc.ca/2025/12/30/trump-threatens-to-sue-powell-and-will-announce-his-replacement-in-january]. ### Supporting Evidence and Data - **Renovation Costs**: The Federal Reserve's renovation project is reported to have a budget of $2.5 billion, which Trump claims is unprecedented in terms of cost per square foot [https://www.thegatewaypundit.com/2025/12/watch-we-have-fool-federal-reserve-trump-announces]. - **Market Reactions**: Trump's previous attempts to oust Powell in July were met with negative reactions from equity markets, highlighting the sensitivity surrounding the Federal Reserve's independence [https://www.cnbctv18.com/world/maybe-i-still-might-donald-trump-takes-another-jibe-at-firing-fed-chair-powell-19807470.htm]. ### Conclusion: Implications of Trump's Actions - **Increased Tensions**: Trump's threats against Powell reflect ongoing tensions between the executive branch and the Federal Reserve, raising concerns about the independence of the central bank. - **Potential Leadership Change**: The announcement of a new Fed chair in January could lead to significant shifts in monetary policy, depending on Trump's choice and the subsequent market reactions. - **Legal and Economic Ramifications**: The proposed lawsuit against Powell could set a precedent for future interactions between the presidency and the Federal Reserve, potentially impacting economic stability and investor confidence. In summary, Trump's renewed threats against Powell over renovation costs and his intentions to possibly replace him signal a turbulent period ahead for the Federal Reserve, with implications for both monetary policy and market stability [https://www.newser.com/story/381130/trump-threatens-lawsuit-against-fed-chair.html].