Trump Renews Attack on Fed Chair Powell Amid Controversial Investigation
Former President Donald Trump has launched a sharp verbal assault on Federal Reserve Chair Jerome Powell. Trump accused Powell of being either "incompetent" or "crooked" during remarks to reporters on Tuesday. This criticism comes as Washington grapples with a Justice Department investigation into renovation work at the Federal Reserve's main headquarters building.
Trump's Direct Accusation Against Powell
Speaking outside the White House before traveling to Detroit for an economic address, Trump did not mince words. "He's billions of dollars over budget," Trump stated about Powell's oversight of the renovation project. "So, either he's incompetent or he's crooked. I don't know what he is, but he certainly doesn't do a very good job."
These comments represent the latest escalation in Trump's long-running campaign against the Federal Reserve's leadership. The former president has repeatedly suggested he might dismiss Powell before his term as chair concludes in May. Trump is reportedly already considering potential replacements who would align with his economic views.
Justice Department Probe Sparks Political Backlash
The controversy centers on a criminal investigation revealed over the weekend. The Justice Department has issued grand jury subpoenas to the Federal Reserve regarding the headquarters renovation and Powell's related congressional testimony. This move has triggered significant political fallout.
Republican senators have expressed strong criticism of the investigation. Senator Thom Tillis, a North Carolina Republican and member of the Senate Banking Committee, announced he would block all Federal Reserve nominations until the matter is resolved. Republican Senators Lisa Murkowski and Kevin Cramer have also voiced their disapproval.
Bipartisan Condemnation of Investigation
In a remarkable show of unity, three former Federal Reserve chairs and four former Treasury secretaries from both Republican and Democratic administrations issued a joint statement. They condemned the investigation, stating it "has no place in the United States whose greatest strength is the rule of law, which is at the foundation of our economic success."
This bipartisan condemnation underscores widespread concerns about preserving the Federal Reserve's independence from political pressure.
Powell's Response and Broader Implications
Federal Reserve Chair Jerome Powell responded to the investigation on Sunday. He described the renovation-related probe as "pretexts" for a broader campaign aimed at influencing the Fed's interest rate decisions. "This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation," Powell stated.
Trump has long criticized Powell's monetary policy decisions, repeatedly urging the Fed to cut interest rates. The former president has said he would only appoint a new Fed chair who agrees to lower rates, a position that many experts argue threatens the central bank's traditional independence.
The political fallout from this investigation could have lasting consequences. It may complicate the confirmation process for any future nominee to lead the Federal Reserve. Furthermore, it could undermine efforts to increase presidential influence over the central bank's decision-making processes.
Trump initially appeared to distance himself from the investigation, telling NBC News he was unaware of the subpoenas. However, his subsequent comments attacking Powell have reignited debates about the appropriate relationship between the White House and the nation's central banking authority.
