Fed Chair Powell Accuses Trump Administration of Undermining Central Bank Independence

Federal Reserve Chair Jerome Powell has publicly condemned what he describes as an intimidation campaign by the TRUMP administration, following the issuance of subpoenas in a criminal investigation tied to his congressional testimony. The probe, seen as an escalation of President Trump's efforts to influence Fed policy, centers on renovations at the central bank's headquarters.

Powell framed the Justice Department's move as a direct threat to the institutional autonomy of the Fed, which operates independently from WHITE House control. The confrontation comes amid persistent demands from Trump for aggressive interest rate cuts—a stance the Fed has resisted in favor of measured monetary policy adjustments.

This unprecedented public rebuke from a sitting Fed chair underscores growing tensions between the central bank and an administration seeking greater sway over economic levers. The standoff carries implications for financial markets accustomed to the Fed's insulation from political pressure.