At a White House event last week, Trump publicly criticized federal prosecutors for being slow to act and unwilling to indict his designated targets, accusing them of being "incompetent" and making it difficult for Justice Department leadership to advance their work. This fiery exchange occurred just one day before the U.S. Justice Department issued a subpoena to the Federal Reserve.
On January 13, according to The Wall Street Journal, sources familiar with the matter revealed that an event originally intended for ceremonial photo-taking devolved into a direct presidential rebuke of the prosecutorial corps. Trump singled out specific prosecutors for criticism during the White House gathering, stating he felt "betrayed," and specifically complained that the Justice Department had not yet filed charges against his main Democratic rival, California Senator Adam Schiff.
The report indicated that this conflict highlights the increasingly tense relationship between Trump and the judicial system, also raising market concerns about political interference with judicial independence.
Just one day after this White House event, federal prosecutors served the Federal Reserve with a grand jury subpoena, investigating Fed Chair Jerome Powell's testimony from last summer regarding the central bank's building renovation project.
According to a previous Wall Street Seen article, Powell stated in a video declaration last Sunday that this investigation was politically motivated. Trump publicly questioned Powell's competence during a Tuesday press conference, claiming he "not only overspent by billions of dollars" and even suggested he might have issues with either "incompetence or dishonesty."
The White House photo-op turned into a "struggle session": The President felt betrayed.
The report pointed out that according to sources, dozens of federal prosecutors responsible for U.S. attorney offices across the nation were invited to the White House for a photo session last Thursday (January 8).
After Attorney General Pam Bondi introduced the group of prosecutors, the atmosphere deteriorated sharply. Trump began criticizing those present for inefficiency, even naming and shaming prosecutors from specific districts, bluntly stating that he felt betrayed.
Among this series of grievances, Trump specifically mentioned that the Justice Department had not yet filed a lawsuit against his prominent Democratic opponent, California Senator Adam Schiff.
The Justice Department is currently investigating whether Schiff may be involved in mortgage loan fraud, while the senator has previously dismissed the investigation as false political retaliation.
Sources noted that this face-to-face reprimand reflects Trump's growing impatience with the Justice Department in recent times. He has complained multiple times in recent weeks about Attorney General Bondi, viewing her as an "ineffective executor" of his agenda.
According to The Wall Street Journal, this White House outburst is seen as part of the President's pressure campaign aimed at forcing the agency to more aggressively pursue his political priorities.
The subpoena controversy: Trigger points and responses in the Fed investigation.
The report stated that just one day after the intense White House meeting, federal prosecutors formally served the Federal Reserve with a grand jury subpoena on Friday. The core of this investigation revolves around Fed Chair Jerome Powell's testimony concerning the central bank building renovation project.
D.C. Federal Prosecutor Jeanine Pirro, who attended the White House event, posted on a social platform Monday that the subpoena was issued after her office took action following multiple unsuccessful attempts to obtain information.
The report indicated that, according to sources, the inquiry began last November. An attorney from Pirro's office had emailed the Fed twice last month—once before Christmas and once after—seeking information about the renovations, but those emails did not mention any deadlines or a criminal investigation at the time.
Pirro stated in her post: "None of this would have happened if they had responded to our outreach. This office makes decisions based solely on the merits, and nothing else."
The Federal Reserve reacted strongly to this. Powell, in a Sunday video statement, directly stated that the investigation was politically motivated. According to a Wall Street Seen article, Powell said this was the result of the Fed not following the President's preferences, and he would continue to fulfill the duties for which the Senate confirmed him.
Facing media questions on Tuesday, Trump did not shy away from attacking Powell, claiming he "not only overspent by billions of dollars, is either incompetent or dishonest," and asserted that Powell was "not doing a good job."
Internal turmoil at the Justice Department: Personnel changes under pressure and low morale.
Reportedly, Trump's high-pressure tactics have already caused significant turbulence within the Justice Department. Sources said the President's pressure has made personnel within the department uneasy, including some lawyers brought in by the current administration.
Late last year, Trump forced a conservative federal prosecutor from Virginia to resign after that prosecutor reported to superiors that there was insufficient evidence to indict New York Attorney General Letitia James and former FBI Director James Comey.
The subsequent replacement, former Trump lawyer Lindsey Halligan, quickly filed lawsuits against both individuals, but the cases were ultimately dismissed by a judge who ruled that Halligan's appointment itself was unlawful.
This turmoil has also affected the Washington office led by Pirro. According to sources, the subpoena targeting the Fed further dampened morale in that office, with a significant number of lawyers having resigned or been fired since Trump returned to the White House.
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