Trump's repeated threats to sue and replace Fed Chair Jerome Powell

The Justice Department's decision to investigate the Federal Reserve comes after a long string of threats by President Donald Trump to go after the central bank's chair, Jerome Powell.

Trump told NBC News on Sunday night that he had no advance knowledge of the Justice Department's subpoenas, which center on Powell's Senate testimony in June about the renovation of the Federal Reserve's office buildings.

But Trump's displeasure — and his desire to see legal action against Powell and the agency — was out in the open. For months, he has been making remarks and posting on social media that he wants Powell gone. In the past, the Justice Department has brought charges against current and former officials Trump has publicly exhorted the attorney general to prosecute.

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While he has criticized the Federal Reserve's renovation project — at the same time he is pursuing a controversial renovation of the White House — the core of Trump's frustrations with Powell have stemmed from the chair's refusal to further lower interest rates to fit with the administration’s agenda.

On Sunday night, Powell released a video in which he went after Trump directly. The move was highly unusual for a Fed chair, who generally tries to stay out of the political fray, and the first time Powell has directly called out the president. He said the subpoenas were "unprecedented" and "should be seen in the broader context of the administration's threats and ongoing pressure."

In his brief phone call with NBC News on Sunday, Trump said the Justice Department subpoenas have nothing to do with interest rates.

“No. I wouldn’t even think of doing it that way. What should pressure him is the fact that rates are far too high. That’s the only pressure he’s got,” he said.

Still, the tension between the two men has been evident for some time. During a tour of the Federal Reserve in July, Trump criticized Powell for the cost of the renovation project. Powell took issue with the president's assessments, saying he was misreading the documents in question.

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Trump pushes Powell on rates and renovation costs during Fed visit

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A spokesperson for the Justice Department has said the attorney general has "instructed her U.S. attorneys to prioritize investigating any abuse of taxpayer dollars."

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The Federal Reserve is not funded through taxpayer dollars. The central bank and its regional banks are funded by fees on services like check processing, as well as loans it makes to corporate banks and the income it gets from its investment portfolio of U.S. government bonds, foreign currencies and other securities.

Timothy Lauer, a spokesperson for the office of the U.S. attorney for the District of Columbia — the office handling the case — said, “We do not comment on ongoing investigations.”

Below are some key times when the president has publicly pressured Powell.

Threats to sue Powell

• "We’re thinking about bringing a suit against Powell for incompetence. ... These are small buildings. He said, $4 billion more, it’s going to end up causing more than $4 billion. ... There is nothing you can do about he’s just a very incompetent man, but we’re going to probably bring a lawsuit against him." [Trump remarks at Mar-a-Lago, 12/29/25]
• "I think it’s just grossly incompetent, but not quite as incompetent as his decision not to do interest rates, take down interest rates because, just like they shouldn’t have taken down a ceiling, they should take down interest rates." [Trump was asked by a reporter about how he was considering suing Powell, at the Kennedy Center, 8/13/25]
• "Jerome 'Too Late' Powell must NOW lower the rate. ... I am, though, considering allowing a major lawsuit against Powell to proceed because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings. Three Billion Dollars for a job that should have been a $50 Million Dollar fix up. Not good!" [Trump on Truth Social, 8/12/25]

Calls for Powell to resign or be fired

• "Mortgage rates are down despite the Fed. ... I'd love to fire his ass. He should be fired. The guy is grossly incompetent and he should be sued for spending $4 billion to build a little building." [Trump at the U.S.-Saudi Investment Forum, 11/19/25]
• "I'd love to get the guy currently in there out right now, but people are holding me back." [Trump in the Oval Office, 11/18/25]
• Trump posted an image on Truth Social of him firing Powell [9/27/25]
• "I would remove him in a heartbeat, but they say it would disturb the market and he gets out in seven or eight months, and I'll put somebody else in." [Trump in a Newsmax interview, 8/1/25]
• "I don't rule out anything, but I think it's highly unlikely, unless he has to leave for fraud. I mean, it's possible there's fraud involved with the $2.5, $2.7 billion renovation. This is a renovation. How do you spend $2.7 billion? And he didn't have proper clearance, etc., etc. So, you know that's going on, so there could be something to that." [Trump on the possibility of firing Powell, in Oval Office remarks, 7/16/25]