Former President Donald Trump has publicly declared that he was unaware of the Justice Department’s recent investigation into the Federal Reserve, which involves a subpoena directed at the central bank. In a brief interview with NBC News on Sunday night, Trump commented negatively on Federal Reserve Chair Jerome Powell, suggesting inadequacies in his leadership.
Powell himself addressed the situation, revealing that the Justice Department is considering criminal charges tied to his statements before the Senate regarding the renovation of the Federal Reserve’s office buildings. He emphasized that the independence of the Federal Reserve must be upheld, noting that no one, including the chair, is above the law. The backdrop of this investigation reflects a larger tension stemming from Trump’s calls to lower interest rates over the past year, which Powell suggested influenced this latest governmental maneuver.
During the interview, Trump dismissed any correlation between the subpoenas and interest rates, insisting that the pressure on Powell should stem from high rates that he believes are harming the public. Trump also speculated about possible legal action against Powell, asserting his incompetence regarding cost overruns in the Federal Reserve’s renovation projects.
This investigation has provoked strong reactions from both sides of the political spectrum. Republican Senator Thom Tillis of North Carolina stated he would oppose confirming any nominees for the Federal Reserve, including the position of chair, until the legal proceedings are resolved. He criticized the Trump administration for allegedly undermining the Federal Reserve’s independence.
On the Democratic front, Senator Elizabeth Warren weighed in, accusing Trump of misusing the Department of Justice for his own advantage, likening his actions to those of a dictator. She echoed Tillis’s sentiment that there should be no advancement of Trump’s nominees for the Federal Reserve while this matter remains unresolved.
Currently, Powell’s term as chair is set to expire in May, though he will retain his position on the Federal Reserve’s Board of Governors until 2028. The White House has refrained from commenting, directing all inquiries to the Justice Department, which has stated its focus is on investigating any misuse of taxpayer funds, despite the Federal Reserve’s operational funding model being independent of tax revenues.
The unfolding investigation continues to spotlight the tense relationship between Trump and the Federal Reserve, highlighting concerns over the institution’s independence and the boundaries of political influence in financial governance.