The Trump administration has launched a fierce assault on the Federal Reserve, with President Donald Trump's Department of Justice threatening to criminally indict Chairman Jerome Powell over his role in renovating Fed buildings. This move is seen as a brazen attempt by Trump to exert full control over the central bank and undermine its independence.
Powell has stated that he will not be intimidated by these subpoenas and will continue to follow his mandate, which prioritizes price stability and maximum employment. However, this stance has been met with fierce pushback from Republicans, including Sen. Kevin Cramer, who has called for an end to the "criminal investigation" against Powell.
A bipartisan group of former Fed chairs and top economists has issued a statement condemning the White House's actions as an "unprecedented attempt to use prosecutorial attacks to undermine" the central bank's independence. This move is seen as a threat to the economic stability of the US, as it could embolden Trump's agenda for radical monetary policy.
The tension between the White House and Powell has been building for some time, with Trump repeatedly criticizing and belittling the Fed chair. In a December 29 news conference, Trump even threatened to sue Powell for "gross incompetence" over the cost of renovations, calling it the "highest price of construction per square foot in the history of the world."
The economic implications of this move are far-reaching and potentially devastating. The Fed's independence is seen as a key factor in maintaining economic stability, and any attempt to undermine it could have severe consequences for the US economy.
As Powell's term as chair ends in May, this development raises questions about his future role at the Fed. If he chooses to remain on the board until his separate term as governor ends in January 2028, Trump would be deprived of the chance to fill another seat on the board.
In a statement issued on Monday, a group of former Fed chairs and top economists warned that the White House's actions are "an unprecedented attempt to use prosecutorial attacks to undermine" the central bank's independence. This move has been widely condemned by experts and lawmakers alike, who see it as a threat to the economic stability of the US.
The stock markets have also fallen in reaction to Powell's statement on Sunday night, with investors sensing that the White House is seeking to exert control over monetary policy. As this saga continues to unfold, one thing is clear: the battle for control of the Fed has reached a critical juncture.
Powell has stated that he will not be intimidated by these subpoenas and will continue to follow his mandate, which prioritizes price stability and maximum employment. However, this stance has been met with fierce pushback from Republicans, including Sen. Kevin Cramer, who has called for an end to the "criminal investigation" against Powell.
A bipartisan group of former Fed chairs and top economists has issued a statement condemning the White House's actions as an "unprecedented attempt to use prosecutorial attacks to undermine" the central bank's independence. This move is seen as a threat to the economic stability of the US, as it could embolden Trump's agenda for radical monetary policy.
The tension between the White House and Powell has been building for some time, with Trump repeatedly criticizing and belittling the Fed chair. In a December 29 news conference, Trump even threatened to sue Powell for "gross incompetence" over the cost of renovations, calling it the "highest price of construction per square foot in the history of the world."
The economic implications of this move are far-reaching and potentially devastating. The Fed's independence is seen as a key factor in maintaining economic stability, and any attempt to undermine it could have severe consequences for the US economy.
As Powell's term as chair ends in May, this development raises questions about his future role at the Fed. If he chooses to remain on the board until his separate term as governor ends in January 2028, Trump would be deprived of the chance to fill another seat on the board.
In a statement issued on Monday, a group of former Fed chairs and top economists warned that the White House's actions are "an unprecedented attempt to use prosecutorial attacks to undermine" the central bank's independence. This move has been widely condemned by experts and lawmakers alike, who see it as a threat to the economic stability of the US.
The stock markets have also fallen in reaction to Powell's statement on Sunday night, with investors sensing that the White House is seeking to exert control over monetary policy. As this saga continues to unfold, one thing is clear: the battle for control of the Fed has reached a critical juncture.
. Threatening to criminally indict Powell? Like, what's next? Trying to sue him for breathing too hard in meetings 
? This whole thing just reeks of power struggles and a total disregard for the Fed's independence 
. The economic implications are already scary, and I'm worried that this is going to have some serious ripple effects on the stock market 
. And what really gets my goat is how some Reps are siding with Trump on this 
. Like, come on guys, get your priorities straight! The economy needs stability, not some petty vendetta against Powell 
.
I'm kinda worried about this whole Fed situation... Trump's actions are like, super aggressive and it feels like he's trying to strong-arm Powell into doing what he wants. The fact that they're threatening to indict him over some renovation costs is just ridiculous 
And now the former Fed chairs are speaking out against it? That's gotta count for something. This is like a whole different level of politicization of the economy and it makes me nervous 
. Can we just have some stability for once?
It's like Trump thinks he can just dictate whatever and Powell will back down? Newsflash, dude: that's not how it works 
The economy is already super volatile, let's not make it worse. And I'm Team Powell all the way – the guy's trying to do his job to the best of his ability 
Anyway, this whole thing with Trump going after Powell feels like something out of The Godfather, you know when Don Vito gets all upset because some underling is gonna cross him? 
But seriously, if the White House is trying to take down Powell, they need to understand that he's been around longer than some of these Congress critters. He knows what's up... and Trump just thinks he can strong-arm him into doing his bidding? 
Please, like we've seen this movie before... in 1992.
, Powell's got more guts than most politicians, he won't let Trump bully him into submission 
. And honestly, what's with all these subpoenas? Can't we just have a normal, peaceful transfer of power without some kind of vendetta? 
. I mean, come on, what's next? Trying to prosecute the whole Fed board for doing their job? 
And what's up with the "gross incompetence" threat? That's just a bunch of petty nonsense 
.
Trump's going all out to take down Powell and it's getting pretty intense. Can't say I blame him for trying to exert control over the Fed, but this is a whole different story when he starts making personal attacks... 
. I mean, come on, who does he think he is? Powell's been clear about his mandate: price stability and max employment. Can't we just agree on that? 
.
Can't we just let the experts do their thing without interference? It's time to put aside party politics and think about the bigger picture 
... he's got to maintain some semblance of independence if we're going to keep our economy stable. 
his whole "price stability" thing is not just some buzzword, its a real deal strategy to prevent inflation and keep us from going broke 
. And what's next? Attacking the SEC? 
. It's just another excuse for Trump to exert his control over everything 
. We need to keep an eye on this one, folks 
.
. Powell's got more guts than I thought, standing up to all this nonsense, but it's still gonna be a disaster. What's next? Trump gonna start messing with the IRS too? 
powell's not intimidated tho, but i get why trump's getting under his skin 