Federal Reserve Chairman Jerome Powell is facing an unprecedented threat from the Justice Department in what appears to be an attempt by the Trump administration to exert control over the central bank. The Fed's top official revealed Sunday that he received subpoenas from the department, with the threat of a criminal indictment hanging over his head.
The subpoenas, Powell claimed, are linked to his testimony before the Senate in June regarding the renovation of Federal Reserve office buildings. However, Powell stated that the threatened indictment was merely a pretext for the administration's broader pressure campaign against the Fed and its decision-making process on interest rates.
Powell emphasized that no one, not even the chair of the Federal Reserve, is above the law but argued that this unprecedented action must be seen in the context of the administration's past threats and intimidation tactics. He stressed that the threat to his job is connected to the central bank's efforts to set interest rates based on evidence and economic conditions rather than being dictated by political pressure or intimidation.
Powell has repeatedly denied any wrongdoing, including regarding the renovation project at the Federal Reserve headquarters, which was criticized by Trump officials over cost overruns. The Fed has since brought in its inspector general to review the building expansion.
The latest move from the Justice Department highlights growing tensions between the administration and the central bank. Senate Tom Tillis has stated that he will oppose any Trump nominee for the Fed until this matter is fully resolved, echoing concerns about the administration's attempt to undermine the independence of the Federal Reserve.
Trump himself remained unapologetic in his criticism of Powell, claiming he was "not very good at the Fed" and had not done a good job on building projects. However, Trump acknowledged that rates were too high, seemingly shifting his argument from targeting Powell directly to advocating for lower interest rates.
This ongoing saga reflects the increasingly contentious relationship between the executive branch and the central bank in the United States, highlighting concerns about the independence of monetary policy decision-making.
The subpoenas, Powell claimed, are linked to his testimony before the Senate in June regarding the renovation of Federal Reserve office buildings. However, Powell stated that the threatened indictment was merely a pretext for the administration's broader pressure campaign against the Fed and its decision-making process on interest rates.
Powell emphasized that no one, not even the chair of the Federal Reserve, is above the law but argued that this unprecedented action must be seen in the context of the administration's past threats and intimidation tactics. He stressed that the threat to his job is connected to the central bank's efforts to set interest rates based on evidence and economic conditions rather than being dictated by political pressure or intimidation.
Powell has repeatedly denied any wrongdoing, including regarding the renovation project at the Federal Reserve headquarters, which was criticized by Trump officials over cost overruns. The Fed has since brought in its inspector general to review the building expansion.
The latest move from the Justice Department highlights growing tensions between the administration and the central bank. Senate Tom Tillis has stated that he will oppose any Trump nominee for the Fed until this matter is fully resolved, echoing concerns about the administration's attempt to undermine the independence of the Federal Reserve.
Trump himself remained unapologetic in his criticism of Powell, claiming he was "not very good at the Fed" and had not done a good job on building projects. However, Trump acknowledged that rates were too high, seemingly shifting his argument from targeting Powell directly to advocating for lower interest rates.
This ongoing saga reflects the increasingly contentious relationship between the executive branch and the central bank in the United States, highlighting concerns about the independence of monetary policy decision-making.
! The Justice Dept's move on Jerome Powell is like, a whole new level of crazy 
. I mean, come on, threatening to indict someone over a Senate testimony? That's just not right 
. It's all about politics and control, you know? 
The Fed's supposed to be independent, but it sounds like the Trump admin is trying to pull some strings behind the scenes 
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. He made it clear that no one's above the law, even if they're the head of the Federal Reserve 
. It's all about credibility and trust, you feel me? 
The fact that the Senate is speaking out against this move is music to my ears 
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. If Trump is trying to strong-arm Powell into doing his bidding, it's a huge problem for the Fed's decision-making process 
. We can't have politics interfering with monetary policy that badly 
. It's time for the Justice Dept to back off and let the Fed do its thing 
. #FederalReserve #IndependenceMatters #JusticeDept
This whole thing is getting crazy! Like, who does the Trump administration think they are trying to take down the head of the Fed? I get that Powell's been pushing back on some of the admin's ideas for rate hikes, but threatening a criminal indictment over renovation costs? That's just not right 
. And now Senate Tillis is weighing in and refusing to approve any Trump nominees until this settles - good move, senator! 
The Fed is meant to be independent, but I guess when you're trying to get your own guy on the job, all bets are off 
. It's like they think Powell can just take a bullet for them if he steps out of line? No way, dude! 
... it's like a big ol' game of musical chairs, except instead of chairs we got interest rates 
. It's not like he's some corrupt politician who's taking bribes or anything 
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. Who needs an independent Fed when you can just threaten their chair? I mean, what's next, a Congressional subpoena for everyone's Netflix password? 
The Fed's got this, and if they do get dragged into some trumped-up drama, I'll be over here sipping tea while watching them politely tell Trump "no". 
️
Same thing goes for our economic leaders - they need to be able to make tough decisions without fear of retribution.
to me it seems like trump and his team are trying to strong arm powell into doing what they want and its just not right 
tillis saying he wont support any trump nominee until this is resolved is a huge statement and i love it 
. Jerome Powell's gotta be worried, but at the same time, he shouldn't be intimidated by a threat of indictment, right? It's like, yeah, everyone's supposed to follow the law, but the president can't just go after someone in a petty revenge move 
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. First, they're after Powell, now they're going after anyone who supports him 
. The thing is, if you think about it, this whole thing just screams "power grab" 
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. The fact that they're going after him specifically because he refused to cave to pressure from Trump's admin is really concerning 
. What's next? Are we gonna see the Fed's independence get sold out to the highest bidder 
. Powell seems like he's trying to stand firm on that, which is admirable 
. We can't have our central bank being run like some kind of political puppet show 
. The Fed's independence is what keeps us from having hyperinflation or economic disasters – it's non-negotiable!