U.S. President Donald Trump on Tuesday renewed his call for the Federal Reserve to lower benchmark interest rates and simultaneously cited plans to pursue “a major lawsuit” against Federal Reserve Chair Jerome Powell regarding the management of construction projects at the central bank’s buildings.
Taking to his social media platform, Trump wrote, “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.” This latest jab underscores Trump’s ongoing frustration with Powell’s monetary policy approach amid a complex economic backdrop.
In a separate but related volley on Tuesday, Trump criticized Goldman Sachs and its CEO David Solomon, targeting the financial institution’s early 2025 economic forecasts that had predicted a recession and a declining stock market following Trump’s aggressive tariff announcements — forecasts that Trump insists were proven wrong.
“David Solomon and Goldman Sachs refuse to give credit where credit is due,” Trump posted on Truth Social. “They made a bad prediction a long time ago on both the Market repercussion and the Tariffs themselves, and they were wrong, just like they are wrong about so much else. I think that David should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ, and not bother running a major Financial Institution.”
Goldman Sachs declined to comment on the post.
Earlier this year, Goldman Sachs’ economic research team had joined many on Wall Street in forecasting that the U.S. economy would enter a recession in 2025, largely driven by Trump’s reciprocal tariffs. However, after Trump imposed a 90-day pause on many of those tariffs, Goldman quickly reversed its recession call.
During the same period, Goldman’s equity strategy team reduced its year-end target for the S&P 500 to 5,700 — a level that would have signaled a negative year for the benchmark index. Yet, as markets rebounded, the team led by David Kostin upgraded its target to 6,600, projecting roughly a 3% gain over current levels.
Trump’s critique of Solomon fits into a pattern of the former president publicly challenging the leadership of major U.S. banks. Just last week, Trump accused Bank of America CEO Brian Moynihan and JPMorgan Chase CEO Jamie Dimon of “discriminating against me” by denying him banking services, comments he made during an interview on CNBC’s “Squawk Box.”
With the economy and markets at the forefront of political and financial debate, Trump’s outspoken criticism of the Fed and Wall Street executives is likely to keep the spotlight on the complex interplay between monetary policy, trade decisions, and investor sentiment moving forward.
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