Tensions continue between US President Donald Trump and Fed Chair Jerome Powell over interest rates. Trump frequently insults Powell, accusing him of being late to cut interest rates. Following the inflation figures announced hours ago, Trump made a new post on his Truth Social account and once again stated that Fed Chair Powell should lower interest rates. As the feud between the two continues, Trump also announced that he is considering filing a lawsuit against Powell over the Fed building costs. At this point, Trump has stated that he is considering allowing a major lawsuit against Powell, accusing her of “egregious” mismanagement of the Fed building renovations. “Powell, who is always late, must cut interest rates now. The damage he has done because he is always too late is incalculable. . . . Fortunately, the economy is so good that we have defeated Powell and his complacent Board. However, I am considering allowing a major lawsuit against Powell for his disastrous and utterly incompetent job in overseeing the construction of the Federal Reserve Building. He did a job that could have been done for $50 million, but for $3 billion. As you may recall, Trump personally inspected the renovation and construction works that could be the subject of a lawsuit during his visit to the FED last month. What Will the Fed Do in September? Inflation data for July was released hours ago, and the data further increased expectations for a Fed rate cut in September. Wall Street Journal reporter Nick Timiraos, known as the Fed spokesperson, made a statement after the data arrived, arguing that the Fed would likely not be able to make it through its September interest rate meeting without making a cut. According to Timiraos, if inflation had been high today, the possibility of a September interest rate cut would have been off the table. However, while not saying there is no inflation, it's not at a level that would prevent a September rate cut. “Following the July employment report, the bar for interest rate cuts has shifted. The September interest rate cut could have been interrupted by the high CPI figures announced today. July's CPI was not an inflation-free reading, but it was not high enough to stop a September cut. Following the July inflation data, the probability that the FED will cut rates by 25 basis points in September is priced in at 94.2%. *This is not investment advice.