Trump Threatens Major Lawsuit Against Fed Chair Powell Amid Rate Cut Pressure

U.S. President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, demanding an immediate reduction in benchmark interest rates and threatening a major lawsuit over the costly renovations of the Fed's buildings. Trump characterized Powell's management of the construction as "horrible and grossly incompetent," highlighting a $3 billion expense that he claims should have been around $50 million. Despite some Fed members supporting a rate cut, Powell has maintained steady interest rates, prompting Trump to call for an emergency meeting or Powell's resignation. This confrontation has unsettled financial markets, including a notable dip in Bitcoin's value. While Trump's actions reflect his dissatisfaction with Powell's fiscal policies and infrastructure oversight, experts warn that forcing Powell's resignation or politicizing the Fed could undermine trust in the institution and harm the economy. The situation remains dynamic as Trump continues to leverage legal and political pressure on the Federal Reserve.