Trump threatened to allow a “major lawsuit” against Federal Reserve Chairman Jerome Powell to go forward because of Powell’s management of major renovations at the Fed’s headquarters in Washington, DC"

President Donald Trump is now hinting that Federal Reserve Chair Jerome Powell could be staring down a lawsuit — this time over what Trump calls mismanagement of costly renovations to the central bank’s historic headquarters.

The warning, delivered Tuesday on Trump’s Truth Social account, marks the latest escalation in his long-running public feud with the Fed chief.

Trump and Powell have frequently been at odds over interest rate policy. While Trump has been pressing for steep and immediate rate cuts, Powell has insisted the central bank will move only when economic data supports such a decision — not under political pressure.

“Jerome ‘Too Late’ Powell must NOW lower the rate,” Trump posted. “That said, I am considering letting a major lawsuit against Powell move forward because of the disastrous and grossly incompetent way he has handled the construction of the Fed buildings.”

Critics warn that Trump’s increasingly personal attacks on Powell could further erode the perception of the Fed’s independence, raising concerns that the central bank could become more closely tethered to the president’s political agenda.

When asked about the possible legal action, White House Press Secretary Karoline Leavitt declined to elaborate, saying only, “At this moment in time, the president is considering a lawsuit against the Fed, and I will leave it to him to comment further.”