Donald Trump Speaks Out Again About Federal Reserve Chairman Jerome Powell: Harsh Criticism

Amid increasing concerns in the US public about the erosion of the Federal Reserve’s (Fed) independence, President Donald Trump continues to escalate criticism against Fed Chair Jerome Powell. Speaking to the press at the White House, Mr. Trump accused Mr. Powell of “either incompetence or corruption.” The President claimed that the head of the Fed allowed renovation costs for the Fed headquarters in Washington to exceed the budget by billions of dollars. “He overspent by billions. So, either he is not capable, or there is an integrity issue. Whatever the case, it’s clear he’s not doing his job well,” Mr. Trump said. These sharp remarks were made amid concerns from both the Democratic and Republican parties about an unprecedented criminal investigation initiated by the US Department of Justice into the Fed Chair. When asked whether the investigation might undermine public trust in the Fed, Mr. Trump continued to emphasize allegations related to cost overruns in the renovation project. On the same day, many influential voices in the US financial and political circles called for protecting the Fed’s independence from pressure by the executive branch. JPMorgan Chase CEO Jamie Dimon stated after announcing Q4 earnings: “We all believe in the independence of the Fed. Any action that damages that is not a good idea. On the contrary, it will increase inflation expectations and ultimately lead to higher interest rates.” From Congress, Republican Senator John Kennedy – a member of the Senate Banking Committee – warned that a power struggle between the Fed and the executive branch would only cause interest rates to rise, not fall. “We don’t need that,” he said. Conversely, Washington D.C. Attorney General Jeanine Pirro affirmed that her office has no intention of withdrawing legal procedures against Mr. Powell and the Fed. In a late-night statement, Ms. Pirro said her agency had contacted the Fed multiple times but received no response, which is why legal action was initiated. “No one is above the law. Therefore, we expect full cooperation from the Fed Chair,” she emphasized. This tense development has sparked widespread debate about the boundaries of power between the White House and the central bank, as well as potential consequences for US monetary policy and economic stability in the near future.