{"id":16252,"date":"2025-08-12T15:50:48","date_gmt":"2025-08-12T15:50:48","guid":{"rendered":"https:\/\/topat10.com\/?p=16252"},"modified":"2025-08-12T15:50:48","modified_gmt":"2025-08-12T15:50:48","slug":"trump-threatens-legal-action-against-powell-over-fed-hq-demands-immediate-rate-cuts-as-inflation-holds-steady","status":"publish","type":"post","link":"https:\/\/topat10.com\/?p=16252","title":{"rendered":"Trump threatens legal action against Powell over Fed HQ, demands immediate rate cuts as inflation holds steady"},"content":{"rendered":"\n<p>President Donald Trump escalated his campaign against Federal Reserve Chair Jerome Powell just about an hour after the <a href=\"https:\/\/fortune.com\/2025\/08\/12\/us-inflation-flat-tariffs-price-pressures-fed-trump-bls\/\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2025\/08\/12\/us-inflation-flat-tariffs-price-pressures-fed-trump-bls\/\" class=\"sc-19cc8fd2-0 iHosVH\">latest release of inflation data<\/a>, publicly threatening to sue him over the central bank\u2019s headquarters renovation and repeating his call for immediate interest rate cuts. The confrontation comes as the Consumer Price Index report showed U.S. inflation in July was milder than expected, raising political pressure on the central bank to ease monetary policy. Complicating matters for the Fed, though, is \u201ccore\u201d inflation, excluding volatile food and energy prices, was the highest it\u2019s been in five months.<a href=\"https:\/\/www.aljazeera.com\/news\/2025\/8\/1\/trump-calls-for-fed-board-to-take-control-chair-powell-over-interest-rates\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Go to https:\/\/www.aljazeera.com\/news\/2025\/8\/1\/trump-calls-for-fed-board-to-take-control-chair-powell-over-interest-rates\" class=\"sc-19cc8fd2-0 iHosVH\"\/><\/p>\n<div>\n<p>In a social media salvo Friday, Trump returned to his sharp critiques of the Fed chair. \u201cJerome \u2018Too Late\u2019 Powell must <a href=\"https:\/\/fortune.com\/company\/now\/\" target=\"_blank\" aria-label=\"Go to https:\/\/fortune.com\/company\/now\/\" class=\"sc-19cc8fd2-0 iHosVH\">NOW<\/a> lower the rate,\u201d he <a href=\"https:\/\/truthsocial.com\/@realDonaldTrump\/posts\/115016089386029482\" target=\"_blank\" rel=\"noopener\" aria-label=\"Go to https:\/\/truthsocial.com\/@realDonaldTrump\/posts\/115016089386029482\" class=\"sc-19cc8fd2-0 iHosVH\">wrote on Truth Social<\/a>. Then Trump turned to the subject of his legal threat: Powell\u2019s oversight of the Fed\u2019s planned $2.5 billion renovation of its landmark Washington headquarters. Trump has repeatedly condemned the project, suggesting it amounts to \u201cfraud\u201d and is an unnecessary luxury. <\/p>\n<p>\u201cI think he\u2019s terrible \u2026 But one thing I didn\u2019t see him is a guy that needed a palace to live in,\u201d <a href=\"https:\/\/www.cnn.com\/2025\/07\/15\/business\/trump-says-fed-renovations-are-sort-of-a-fireable-offense\" target=\"_blank\" rel=\"noopener\" aria-label=\"Go to https:\/\/www.cnn.com\/2025\/07\/15\/business\/trump-says-fed-renovations-are-sort-of-a-fireable-offense\" class=\"sc-19cc8fd2-0 iHosVH\">Trump quipped in a recent interview<\/a>, implying lavish spending at taxpayer expense. In July, White House budget chief <a href=\"https:\/\/fortune.com\/2025\/07\/14\/fed-renovation-trump-jerome-powell-washington-dc\/\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2025\/07\/14\/fed-renovation-trump-jerome-powell-washington-dc\/\" class=\"sc-19cc8fd2-0 iHosVH\">Russell Vought formally accused<\/a> Powell of deception over the renovation\u2019s costs, followed soon afterward by Treasury Secretary Scott Bessent confirming a <a href=\"https:\/\/fortune.com\/2025\/07\/15\/scott-bessent-formal-process-to-replace-jerome-powell-federal-reserve\/\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2025\/07\/15\/scott-bessent-formal-process-to-replace-jerome-powell-federal-reserve\/\" class=\"sc-19cc8fd2-0 iHosVH\">selection process was under way<\/a> for Powell\u2019s successor.<a href=\"https:\/\/www.cnn.com\/2025\/07\/15\/business\/trump-says-fed-renovations-are-sort-of-a-fireable-offense\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Go to https:\/\/www.cnn.com\/2025\/07\/15\/business\/trump-says-fed-renovations-are-sort-of-a-fireable-offense\" class=\"sc-19cc8fd2-0 iHosVH\"\/><\/p>\n<p>Despite legal experts widely agreeing the president cannot directly fire the Fed chair for policy disagreements, Trump has suggested cost overruns could constitute grounds for dismissal or a lawsuit, a firing \u201cfor cause.\u201d The Supreme Court, <a href=\"https:\/\/fortune.com\/article\/supreme-court-trump-fire-regulators-fed-powell\/\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/article\/supreme-court-trump-fire-regulators-fed-powell\/\" class=\"sc-19cc8fd2-0 iHosVH\">in a May ruling<\/a>, indicated Powell\u2019s removal for policy reasons was not permitted under current law. The reason Trump wants Powell to lower interest rates doesn\u2019t have anything to do with an office renovation\u2014it\u2019s about the many worrying signs related to the economy.<a href=\"https:\/\/www.cbsnews.com\/news\/trump-asked-gop-lawmakers-if-he-should-fire-jerome-powell-sources\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Go to https:\/\/www.cbsnews.com\/news\/trump-asked-gop-lawmakers-if-he-should-fire-jerome-powell-sources\/\" class=\"sc-19cc8fd2-0 iHosVH\"\/><\/p>\n<h2 class=\"wp-block-heading\">Intensifying Pressure for Lower Interest Rates<\/h2>\n<p>Trump\u2019s attacks on Powell are fueled by the Fed\u2019s refusal to substantially cut its benchmark interest rate, which remains at 4.25%\u20134.50% after a series of hikes in 2022 and 2023. Powell and the Fed have argued maintaining higher rates is necessary to keep lingering inflation in check, especially as the impacts of Trump\u2019s tariffs and global trade disruptions are still being analyzed. Tuesday\u2019s CPI report is ambiguous and could be read either way.<a href=\"https:\/\/www.pbs.org\/newshour\/politics\/trump-demands-that-federal-reserve-board-wrest-full-control-of-central-bank-from-fed-chair-powell\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Go to https:\/\/www.pbs.org\/newshour\/politics\/trump-demands-that-federal-reserve-board-wrest-full-control-of-central-bank-from-fed-chair-powell\" class=\"sc-19cc8fd2-0 iHosVH\"\/><\/p>\n<p>July\u2019s inflation report did notably show a smaller-than-anticipated rise in consumer prices, emboldening Trump to double down on his calls. <\/p>\n<p>\u201cThe damage [Powell] has done by always being Too Late is incalculable,\u201d Trump added, before claiming, \u201cFortunately, the economy is sooo good that we\u2019ve blown through Powell and the complacent Board.\u201d <\/p>\n<p>Trump has argued higher rates are stifling growth and hurting American homeowners and businesses and demanded drastic rate cuts of up to 3 percentage points\u2014a move economists warn could risk unleashing new inflation if mishandled.<\/p>\n<p>Trump\u2019s economy is looking weaker than expected after the July jobs report included massive downward revisions for previous months, revealing an economy with anemic job creation of less than 20,000 in May and June. This prompted many Wall Street analysts to revise their opinions on the impact of Trump\u2019s tariff regime on the economy, and on whether the economy is fated for a <a href=\"https:\/\/fortune.com\/2025\/08\/08\/when-will-economy-have-recession-stagflation-trump-immigration-inflation\/\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2025\/08\/08\/when-will-economy-have-recession-stagflation-trump-immigration-inflation\/\" class=\"sc-19cc8fd2-0 iHosVH\">stagflationary<\/a> mix of high inflation and low growth, a <a href=\"https:\/\/fortune.com\/2025\/08\/11\/sp-500-correction-bubble-markets-inflation-stagflation-recession-stifel\/\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2025\/08\/11\/sp-500-correction-bubble-markets-inflation-stagflation-recession-stifel\/\" class=\"sc-19cc8fd2-0 iHosVH\">stock-market correction<\/a>, or even a <a href=\"https:\/\/fortune.com\/2025\/08\/03\/economic-outlook-recession-warning-zandi-jobs-report-fed-rate-cuts\/\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2025\/08\/03\/economic-outlook-recession-warning-zandi-jobs-report-fed-rate-cuts\/\" class=\"sc-19cc8fd2-0 iHosVH\">recession<\/a>.<a href=\"https:\/\/www.usatoday.com\/story\/money\/2025\/07\/30\/federal-reserve-interest-rate-cuts-live-updates\/85430906007\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Go to https:\/\/www.usatoday.com\/story\/money\/2025\/07\/30\/federal-reserve-interest-rate-cuts-live-updates\/85430906007\/\" class=\"sc-19cc8fd2-0 iHosVH\"\/><\/p>\n<p>Several members of the Fed\u2019s board, including some appointed by Trump (and floated as potential Powell successors), have publicly dissented from Powell\u2019s stance, advocating for more aggressive rate cuts to mix monetary stimulus with the president\u2019s expansionary trade and fiscal policies. But Powell has remained cautious, stressing the need for \u201ca careful approach while observing inflation trends,\u201d and highlighting risks tied to Trump\u2019s trade agenda.<a href=\"https:\/\/www.cnn.com\/2025\/07\/01\/economy\/jerome-powell\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Go to https:\/\/www.cnn.com\/2025\/07\/01\/economy\/jerome-powell\" class=\"sc-19cc8fd2-0 iHosVH\"\/><\/p>\n<h2 class=\"wp-block-heading\">Political and Economic Fallout<\/h2>\n<p>The feud has raised <a href=\"https:\/\/fortune.com\/2025\/07\/16\/will-trump-fire-jerome-powell-jamie-dimon\/\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2025\/07\/16\/will-trump-fire-jerome-powell-jamie-dimon\/\" class=\"sc-19cc8fd2-0 iHosVH\">widespread concern<\/a> over the <a href=\"https:\/\/fortune.com\/2025\/08\/09\/trump-fed-pick-stephen-miran-existential-threat-central-bank-independence\/\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/2025\/08\/09\/trump-fed-pick-stephen-miran-existential-threat-central-bank-independence\/\" class=\"sc-19cc8fd2-0 iHosVH\">perceived independence<\/a> of America\u2019s central bank. Markets have shown volatility as rumors of Powell\u2019s possible firing, or the board taking control from him, have circulated in Washington. Wall Street leaders and economists have warned politicizing Federal Reserve policy could undermine global confidence in U.S. economic management and lead to long-term instability.<a href=\"https:\/\/www.reuters.com\/world\/us\/trump-indicated-republican-lawmakers-he-will-fire-feds-powell-cbs-reports-2025-07-16\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Go to https:\/\/www.reuters.com\/world\/us\/trump-indicated-republican-lawmakers-he-will-fire-feds-powell-cbs-reports-2025-07-16\/\" class=\"sc-19cc8fd2-0 iHosVH\"\/><\/p>\n<p>Trump\u2019s rhetoric, including name-calling and accusations of mismanagement, has fueled fears the delicate balance between elected officials and nonpartisan central bankers is at risk. Despite the friction, Powell has indicated his intent to serve until his term ends in May 2026, as originally set.<a href=\"https:\/\/www.aljazeera.com\/news\/2025\/7\/22\/why-trumps-attacks-on-jerome-powell-have-raised-fears-for-the-us-economy\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Go to https:\/\/www.aljazeera.com\/news\/2025\/7\/22\/why-trumps-attacks-on-jerome-powell-have-raised-fears-for-the-us-economy\" class=\"sc-19cc8fd2-0 iHosVH\"\/><\/p>\n<p><em>For this story,\u00a0<\/em>Fortune<em>\u00a0used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.\u00a0<\/em><\/p>\n<\/div>\n<div data-cy=\"subscriptionPlea\"><strong>Introducing the 2025 Fortune Global 500<\/strong>, the definitive ranking of the biggest companies in the world. <a href=\"https:\/\/fortune.com\/ranking\/global500\/?&amp;itm_source=fortune&amp;itm_medium=article_tout&amp;itm_campaign=plea_text\" target=\"_self\" aria-label=\"Go to https:\/\/fortune.com\/ranking\/global500\/?&amp;itm_source=fortune&amp;itm_medium=article_tout&amp;itm_campaign=plea_text\" class=\"sc-19cc8fd2-0 iHosVH\">Explore this year&#8217;s list.<\/a><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>President Donald Trump escalated his campaign against Federal Reserve Chair Jerome Powell just about an hour after the latest release of inflation data, publicly threatening to sue him over the central bank\u2019s headquarters renovation and repeating his call for immediate interest rate cuts. The confrontation comes as the Consumer Price Index report showed U.S. inflation [&hellip;]<\/p>\n","protected":false},"author":135,"featured_media":16253,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[123],"tags":[],"class_list":["post-16252","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Trump threatens legal action against Powell over Fed HQ, demands immediate rate cuts as inflation holds steady | Unlock Informed Choices with Us<\/title>\n<meta name=\"description\" content=\"Trump returned to his sharp critiques of the Fed chair, saying &quot;Jerome &#x27;Too Late&#x27; Powell must NOW lower the rate.&quot;\" \/>\n<meta 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