U.S. President Donald Trump renewed his criticism of Federal Reserve Chair Jerome Powell on Monday, accusing him of “gross incompetence” over the management of renovations at the Fed’s Washington headquarters, Reuters reported. Trump also said he plans to announce his pick for the next Fed chair in January.

The dispute underscores ongoing tension between the White House and the Fed, which operates independently in setting monetary policy. Trump has repeatedly expressed opposition to Powell’s interest rate decisions, arguing that higher borrowing costs constrain economic growth, though U.S. law prevents the president from removing a Fed chair solely over policy disagreements.

Trump’s focus on the renovation project comes amid rising costs for the overhaul, which have grown from an initial 1.9 billion US dollars pre-pandemic to roughly 2.5 billion US dollars, driven by inflation in construction materials, asbestos remediation, and historic preservation requirements. The president framed these overruns as evidence of mismanagement, signalling potential legal action, though details remain unclear.

Analysts caution that public disputes over the Fed’s operations can influence market sentiment, especially as Powell’s term extends through May 2026. Investors monitor any signals on Fed leadership closely, given the central bank’s key role in guiding U.S. interest rates, inflation, and financial stability.