U.S. President Donald Trump has sharply distanced himself from the recent subpoena issued to the Federal Reserve (Fed), a move that has sparked significant controversy. Trump claimed he knows “absolutely nothing” about it—adding that Fed Chair Jerome Powell “isn’t very good at his job and definitely can’t build buildings.” Powell, however, hit back, declaring that the Fed will not yield to pressure and will continue to act independently of political interference.
Powell: The Fed Will Not Bow to Political Intimidation
Federal Reserve Chair Jerome Powell stated that he faces unprecedented pressure—allegedly even threats of criminal prosecution. He accused the Department of Justice (DOJ) of attempting to influence the Fed because it continues to set interest rates based on economic indicators rather than presidential preferences.
“We will not submit to political intimidation,” Powell declared. He emphasized that he has served under four administrations—both Republican and Democrat—and always fulfilled the Fed’s dual mandate of price stability and maximum employment, free from political influence.
Trump Claims No Connection to the Subpoena
In response, Trump denied any involvement with the DOJ’s subpoena, insisting it had “nothing to do” with interest rates. While acknowledging he has criticized high rates, he claimed Powell deserved public pressure for causing financial pain to many Americans.
“If it were about interest rates, I wouldn’t even think of doing something like that,” Trump said, while simultaneously casting doubt on Powell’s competence as Fed Chair.
Congress Warns Against Undermining Central Bank Independence
Senator Thom Tillis warned that the Fed’s subpoena appears to be an attack on its independence and raised concerns over the intentions behind it. He accused the Trump administration of actively seeking to undermine both the Federal Reserve and the DOJ’s credibility.
Tillis stated he would oppose confirming any Trump nominee for Fed Chair until the issue is fully resolved. Potential Trump picks reportedly include former Fed governor Kevin Warsh and White House National Economic Council Director Kevin Hassett.
Is Trump Using Pulte to Pressure the Fed?
The subpoena effort is allegedly being driven by Bill Pulte, director of the Federal Housing Finance Agency (FHFA) and a close Trump ally. Pulte has reportedly influenced debates over housing policy and is believed to be helping Trump apply pressure on the Fed ahead of appointing a new chair.
However, senior officials insist that the DOJ—not Pulte—is behind the move. Some of Trump’s inner circle were reportedly shocked by the subpoena and fear the legal dispute could destabilize bond markets.
#FederalReserve , #JeromePowell , #DonaldTrump , #USPolitics , #Fed
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“