Trump Calls Fed Chair Jerome Powell a “Fool,” Signals Possible Removal

Trump vs Fed Chair Jerome Powell: Insults, Rate, $4B Renovation Claim

Highlights:

• Trump calls Fed Chair Jerome Powell a “fool” and “incompetent” during Mar-a-Lago press conference.

• He threatens a lawsuit over alleged $4B Fed building renovation costs and fed rate cuts. 

• Trump hints at announcing Powell’s replacement as early as January.

Donald Trump intensified his fight against Federal Reserve Chair Jerome Powell, threatening to sue him, arguing over the cost of renovations, and hinting at Jerome Powell replacement, leading to questions of the independence of the Fed and the stability of the market.

New assault on Federal Reserve Leadership.

In a press conference on December 29, 2025, at Mar-a-Lago, former U.S. President Donald Trump stepped up his attack on Federal Reserve Chair Jerome, openly referring to him as a fool and incompetent. The comments are the most direct assault on US President on the leadership of the Federal Reserve so far, casting new doubts on the independence of the central bank of the United States.

Source: CryptoAman X

Trump made the comments while addressing the media alongside Israeli Prime Minister Benjamin Netanyahu, using the opportunity to revisit long-standing grievances over U.S. monetary policy and Federal Reserve governance.

Lawsuit Threat Over Fed Renovation Costs

A central focus of Trump’s criticism was the ongoing renovation of the Marriner S. Eccles Building, the Federal Reserve’s headquarters in Washington, D.C. Trump claimed the project’s cost has ballooned to over $4.1 billion, calling it “the highest price in the history of construction.”

He accused Jerome of “gross incompetence” and said he is considering filing a lawsuit against the Federal Reserve chair over the alleged cost overruns. However, multiple reports and prior statements from Powell indicate the actual estimated cost of the renovation stands closer to $2.5 billion, significantly lower than Trump’s claim.

Though Donald was corrected in public earlier this year, he has again used the larger number, and it is a pattern of exaggerating the renovation costs to support his criticism.

I'd Love to Fire Him: Trump's Latest Stance.

In the press conference, He publicly claimed that he would love to fire Powell and that there is still the possibility of him being fired. He also condemned President Joe Biden on the reappointment of Powell without explanation because Donald himself appointed Jerome in 2018.

Trump further hinted that a replacement for Powell could be announced as early as January, signaling that preparations are underway to reshape Federal Reserve leadership should he regain influence over the process.

Contradictions and Comparisons to White House Projects

The US President contrasted the Federal's renovation with his own construction projects, including a new White House ballroom, claiming it would cost “a tiny fraction” of the renovation budget. However, he later acknowledged that the ballroom’s cost had doubled from $200 million to $400 million, citing additional security requirements.

Market and Crypto Implications

The new pressure has attracted interest in the financial and cryptocurrency markets. According to the analysts, any effort to undermine Fed independence may result in the loosening of monetary policy, which in the past has been good news to Bitcoin and altcoins, particularly when the market is volatile.

With Donald still questioning the Reserve's authority, investors are keen to monitor the effects of political influence on monetary policy and Fed interest rates on market sentiment in the coming months.

Disclaimer: This is not financial advice. Please DYOR before investing. CoinGabbar is not responsible for any financial losses. Crypto assets are highly volatile, and you can lose your entire investment.