President Donald Trump has spent his second term bulldozing elected and appointed officials who resist him or refuse to bend to his demands. But he may have met his match in Federal Reserve Chair Jerome Powell.
As the Trump administration ramps up its pressure campaign against the central bank – now including Justice Department subpoenas and the threat of criminal charges – Senate Republicans have closed ranks around Powell, defending an self-reliant Fed chair under attack from a president of their own party.
“I know Chairman powell very well. I will be stunned – I will be shocked - if he has done anything wrong,” said GOP Sen. John Kennedy of Louisiana, one of Trump’s most reliable allies in the Senate.
Soon after the Justice Department served subpoenas on the Fed,Powell went on the offensive,releasing a video statement accusing the administration of using “pretexts” to pressure the central bank into sharply cutting interest rates,as Trump has demanded. The 72-year-old Fed chair also leaned on capitol Hill relationships he has cultivated since his 2018 appointment, holding multiple calls with Republican senators in the days following the video’s release.
“He knows his way around Congress,” said Robert Tetlow, a former senior policy adviser at the Fed. “He gets in there, pets the dog, shoots the breeze, and has a way of getting people to like him, and he’s realy good at it.”
for some in Congress, it’s personal
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In a March 2024 hearing, Powell received an unusual greeting from a member of the Senate Banking Committee: The office dog had said hello.
“Gus sends his regards,” said Sen. Thom Tillis, a North Carolina Republican. “If you have time after the hearing, you ought to go by and see him.”
“I don’t want to disturb his nap,” Powell said to laughter in the hearing room.
Now, Tillis – who is retiring at the end of this year – has been among the Republicans rushing to Powell’s defense, v
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Subpoenas to the Federal Reserve & Donald Trump’s Criticism
The Federal Reserve is facing scrutiny following subpoenas issued regarding Chairman Jerome Powell’s comments on the renovation of the fed’s headquarters, a project criticized by former President Donald Trump.This situation occurs within a broader context of Trump’s attempts to influence the Fed and retaliate against officials he perceives as disloyal.
Jerome Powell & the Federal Reserve Headquarters Renovation
The Federal Reserve Board approved a $2.5 billion renovation of its headquarters complex in Washington, D.C., in 2022. The project involves modernizing two existing buildings and improving security. Donald Trump publicly criticized the cost of the renovation, deeming it excessive. Reuters reported on Trump’s criticisms in August 2023. Subpoenas were afterward issued to the Fed related to Powell’s public statements about the project.
Trump’s Response & Potential Retaliation
Donald Trump stated he was unaware of any investigation into Jerome Powell,but acknowledged the situation “looks” like retribution. CBS News reported on Trump’s comments on August 16, 2023. Jerome Powell, in a video statement, asserted that the threat of criminal charges stemming from the Fed’s interest rate decisions based on economic assessment, rather than presidential preference, is a serious concern. Bloomberg covered Powell’s statement on August 16, 2023.
Attempts to Influence the federal Reserve
This situation is part of a pattern of trump attempting to exert influence over the Federal Reserve. He previously sought to remove Fed board member Lisa Cook. The Associated Press reported on the legal challenge to Lisa Cook’s appointment. The Supreme Court ultimately allowed Cook to remain on the board and heard arguments in her case on February 28, 2024.The supreme Court’s press release regarding oral arguments is available here.
Legal Challenges & Resistance
Trump’s efforts to target perceived adversaries haven’t always been successful. Court challenges have dismissed federal inquiries targeting former FBI director James Comey and New York Attorney General Letitia James. NBC News reported on the dismissal of lawsuits against Comey and James in August 2023.
Expert Analysis & Republican Opposition
Legal experts suggest the attempt to indict Powell may be a misstep. Lev Menand, a Columbia University law professor, noted that the effort is facing resistance, even from within the Republican Party. Reuters quoted Menand’s assessment on August 15, 2023.
Breaking News Check (as of 2026/01/17 11:10:39):
As of the current date, the legal challenges related to Lisa Cook’s appointment have been resolved, with the Supreme Court upholding her position. The subpoenas issued to the Federal Reserve regarding the headquarters renovation remain a point of contention, but no criminal indictments have been filed against Chairman Powell. Further developments are being monitored by financial news outlets. The Federal Reserve’s official website continues to be the primary source for updates on the board’s activities.
