President Donald Trump escalated his long-running feud with Federal Reserve Chair Jerome Powell on Thursday, delivering a sharp rebuke during a Cabinet meeting while also praising top law enforcement officials for pursuing a criminal case tied to the central bank’s controversial renovation project.
Speaking before his administration in its second Cabinet meeting of the year, Trump did not hold back, labeling Powell a “moron” and renewing criticism of the Fed’s refusal to lower interest rates. The president has repeatedly referred to Powell as “Too Late,” arguing that the central bank has failed to act aggressively enough amid current economic conditions.
At the same time, Trump publicly thanked U.S. Attorney Jeanine Pirro and Attorney General Pam Bondi for initiating a criminal case connected to the Federal Reserve’s ongoing building renovations—an expensive and increasingly scrutinized project.
“We have a moron at the Fed,” Trump said bluntly. “Who wouldn’t be lowering interest rates right now?” He went on to commend Pirro and Bondi “for having the courage to bring this suit,” suggesting that the spiraling costs of the project warrant serious investigation.
The president also raised concerns about the contractor involved in the renovation, speculating that the individual could now be “one of the richest men in the country” as costs continue to climb. Trump pointed to what he described as an alarming lack of transparency, saying the total price tag—now believed to exceed $3 billion and potentially approach $4 billion—remains unclear.
“It’s not possible to spend that kind of money,” Trump said, expressing disbelief over the scale of the project. He added that the renovation may never be completed unless he personally intervenes, while lamenting what he characterized as the unnecessary destruction of original architectural features, including thick masonry walls and ornate ceilings.
The comments reflect a broader frustration not only with the Federal Reserve’s monetary policy, but also with what Trump and his allies see as unchecked government spending—an issue that resonates strongly with fiscal conservatives already wary of mounting costs at home and abroad.
Still, the administration’s legal push appears to face internal hurdles. Earlier this week, a top deputy under Pirro reportedly acknowledged in private that the Justice Department has not found evidence of criminal wrongdoing by Powell. That admission complicates the president’s assertions and raises questions about whether the case will ultimately hold up under scrutiny.
Trump has been vocal about the renovation issue for months. In January, he signaled interest in pursuing legal action against Powell, citing the ballooning cost of the project, which has exceeded initial projections by roughly $1.5 billion.
While the political battle over interest rates and federal spending continues, the episode underscores a deeper tension in Washington: how to balance oversight and accountability without allowing costly government undertakings—whether domestic projects or larger expenditures—to spiral beyond control. Even as rhetoric intensifies, the facts surrounding the case remain unsettled, leaving both legal and economic questions still unresolved.
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