Daijiworld Media Network- Washington

Washington, Aug 13: US President Donald Trump has once again taken aim at Federal Reserve Chair Jerome Powell, this time suggesting he may allow a lawsuit to move forward against him over the controversial renovation of the Fed’s headquarters, which has been marred by cost overruns.

In a strongly worded social media post on Tuesday, Trump accused Powell of “grossly incompetent” management of the construction project, adding that the delays and expenses were “horrible.” The president also renewed his criticism of Powell for keeping interest rates steady despite signs of a slowing jobs market.

“The damage he has done by always being too late is incalculable,” Trump wrote, while claiming the strong US economy had “blown through Powell and the complacent Board.”

Trump did not clarify which lawsuit he was referring to, and the White House has yet to provide details. His comments, however, had an immediate impact on financial markets, with the yield curve steepening and 10-year Treasury yields rebounding.

The renovation dispute has become another flashpoint in Trump’s long-running feud with Powell. Last month, in a rare move, Trump visited the Fed’s headquarters to inspect the construction site, temporarily softening his tone before renewing attacks after the Fed left rates unchanged in July.

Trump has repeatedly called for Powell’s resignation but has refrained from firing him outright, citing potential market disruption. Powell’s term ends in May, and according to administration officials, Treasury Secretary Scott Bessent is already vetting potential successors.

In the meantime, Trump has tapped his economic adviser Stephen Miran to serve as a Federal Reserve governor, pending Senate approval, filling the remainder of a term that ends in January. This appointment, analysts say, gives the president more time to reshape the Fed’s leadership to his liking.