President Donald Trump said on Tuesday he is considering allowing a lawsuit to proceed against Federal Reserve Chair Jerome Powell over ballooning costs tied to the renovation of the central bank’s Washington headquarters. White House Press Secretary Karoline Leavitt told reporters the option is being studied, declining to provide further details. In a post on his social-media platform, Trump accused Powell of a “horrible, and grossly incompetent” oversight of the project, claiming the price tag has swollen to roughly $3 billion for work he says should have cost about $50 million. Federal Reserve documents place the budget nearer $2.4 billion, up from an original $1.9 billion, attributing the increase to higher labour and materials costs and extensive asbestos abatement. The legal threat intensifies Trump’s long-running dispute with the Fed chief. The president again demanded that Powell “immediately” cut benchmark interest rates, having previously floated—but later shelved—the idea of removing him before his term ends in May 2026. White House officials said they are reviewing whether weak oversight or potential fraud contributed to the cost overruns. A Federal Reserve spokesperson declined to comment. Treasury yields steepened after Trump’s remarks, with ten-year yields touching session highs as investors weighed the prospect that political pressure and firmer July inflation data could push the Fed toward a rate cut as early as September.