President Trump on Tuesday once again publicly criticized Jerome Powell, bluntly stating that the Federal Reserve Chairman is either "incompetent" or "corrupt." This outburst comes as a criminal investigation by the U.S. Department of Justice (DOJ) into Powell sparks bipartisan backlash and intensifies market concerns over the central bank's independence. When questioned by reporters outside the White House about whether the DOJ's unprecedented investigative actions against the Fed Chair would undermine confidence in the institution's long-held independence, Trump responded by alleging Powell had overseen "billions of dollars in cost overruns" on the renovation of the Fed's Washington headquarters, clearly referencing the core issue of the probe. "So, he's either incompetent, or he's corrupt," Trump told reporters, "I don't know which one he is, but he's certainly not doing a good job." Later, while traveling to Michigan to tour a Ford Motor plant and deliver a speech at the Detroit Economic Club, Trump intensified his attacks, calling the Fed Chair a "son of a bitch" and declaring, "he'll be gone soon."
Trump's forceful remarks coincide with a growing chorus of opposition surrounding the DOJ investigation. Numerous figures from both Democratic and Republican parties have publicly voiced support for the Fed's independence, including some of Trump's staunch supporters. JPMorgan Chase CEO Jamie Dimon, speaking to media after the bank released its fourth-quarter earnings on Tuesday, stated, "Everybody we know believes in the independence of the Fed. Anything that detracts from that is probably not a good idea." He warned that such actions could be counterproductive, "pushing up inflation expectations and raising interest rates over the medium to long term."
Dimon's perspective found an echo among some Republican lawmakers. Senator John Kennedy, a Louisiana Republican and member of the Senate Banking Committee, said on Monday that if someone "wanted to design a system to ensure interest rates only go up and never go down, the best way would be to get the Fed into a power struggle with the U.S. administration." He stated plainly, "We absolutely do not need that situation." Concurrently, U.S. Treasury Secretary Janet Yellen has also expressed her concerns to Trump. According to media reports citing informed sources, Yellen believes the DOJ investigation could complicate the established process for confirming the next Fed Chair after Powell's term concludes in May.
However, the U.S. Attorney for the District of Columbia, Matthew Graves, made clear via social media early Tuesday that his office has no intention of dropping its legal actions against the Fed and Powell. He stated that prosecutors had contacted the Fed multiple times regarding the cost overruns and Powell's related congressional testimony but were "ignored," forcing them to resort to legal proceedings, adding that "this is not a threat." Graves further emphasized, "The term 'criminal prosecution' was used by Chairman Powell himself, not by anyone else. Had they responded to our outreach, none of this would be happening." He补充称, prosecutors "make decisions based solely on the merits of the case," and reiterated that "no one is above the law," expressing hope for Powell's full cooperation with the investigation.
Powell himself, in a video statement released Sunday evening, said the DOJ had served him with a grand jury subpoena and threatened "criminal prosecution" related to his prior Senate testimony about the Fed building renovations. He stated plainly that the investigation is closely linked to Trump's long-standing dissatisfaction with the pace of Fed interest rate cuts. "The threat of criminal charges is a result of the Fed setting interest rate policy based on its own best judgment of the public interest, not to cater to the President's preferences," Powell said. He also stressed, "Of course, no one, including the Fed Chair, is above the law, but this unprecedented move should be viewed within the broader context of ongoing government pressure and threats."
In response, Trump has firmly denied any connection between the subpoena and his stance on interest rates. During a news interview on Sunday evening, he stated, "No, it has nothing to do with interest rates, I wouldn't even think that way. The real pressure he should get is that interest rates are simply too high, that's the only source of pressure for him."
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