Trump Weighs Possible Lawsuit Against Fed Chair Jerome Powell

President Donald Trump is weighing legal action against Federal Reserve Chair Jerome Powell, White House press secretary Karoline Leavitt confirmed Tuesday.

The comments followed a post from Trump earlier in the day, stating he was “considering allowing a major lawsuit against Powell to proceed” over what he described as mismanagement of the Fed’s multibillion-dollar building renovation.

The Federal Reserve declined to comment on the potential lawsuit.

Trump’s remarks come as the Fed continues to resist his demands to lower interest rates. In the past, Trump has threatened to fire Powell, though recently he has said Powell will remain in his role until his term expires in May. However, the president indicated he will announce Powell’s successor months ahead of schedule.

While firing a Senate-confirmed Fed board member can only be done “for cause,” Trump has suggested the scale and cost of the renovation — which he claimed should have been a “$50 Million Dollar fix up” — could meet that standard. The president toured the construction site with Powell last month and at the time expressed support for completing the project.

The possible legal move may also align with a criminal investigation being pushed by Republican Rep. Anna Paulina Luna, who alleges Powell gave false testimony to Congress about the renovation.

Trump recently nominated Stephen Miran, his chair of the Council of Economic Advisers, to fill a vacancy on the Fed’s Board of Governors, though he has indicated Miran would not be in line for the chair position. Potential candidates for that role include former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, and Fed Governor Christopher Waller.

Credit: CNN Newsource

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