Trump Faces Surprise as Fed Defies Independence
- WASHINGTON - White House officials were caught by surprise when a post appeared Sunday night on the federal Reserve's official social media channel, with Jerome Powell, its chairman, delivering...
- President Trump was not only weaponizing the Justice Department to intimidate him,Powell saeid to the camera,standing before an American flag.This time,he added,it wasn't going to work.
- The lack of any warning for officials in the West Wing, confirmed to The times, was yet another exertion of independence from a fed chair whose stern resistance...
WASHINGTON – White House officials were caught by surprise when a post appeared Sunday night on the federal Reserve’s official social media channel, with Jerome Powell, its chairman, delivering a plain and clear message.
President Trump was not only weaponizing the Justice Department to intimidate him,Powell saeid to the camera,standing before an American flag.This time,he added,it wasn’t going to work.
The lack of any warning for officials in the West Wing, confirmed to The times, was yet another exertion of independence from a fed chair whose stern resistance to presidential pressure has made him an outlier in Trump’s Washington.
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Washington – A federal examination into potential conflicts of interest involving Federal Reserve Chair Jerome Powell has drawn criticism from some Republicans,while others have dismissed concerns about political interference. The investigation,reportedly focused on financial disclosures made by Powell,is prompting debate over the independence of the central bank.
Jerome Powell and the Federal Reserve
Jerome Powell is the current Chair of the Federal Reserve, serving since 2018.The Federal Reserve Board is responsible for overseeing the nation’s central banking system.
Detail: Powell was first nominated by President Barack Obama and subsequently renominated by President Donald Trump. His current term expires in February 2026. The Federal Reserve System was created by Congress in 1913 to provide a safer, more flexible, and more stable monetary and financial system.
Example: Powell has led the Federal Reserve thru periods of economic expansion, the COVID-19 pandemic, and rising inflation, implementing monetary policy changes such as adjusting interest rates and quantitative easing programs. Minutes from the Federal Open Market Committee meetings detail these policy decisions.
Congressional Reactions to the Investigation
Representative Andy Hill (R-Ark.) expressed concern that the investigation could undermine the independence of the Federal Reserve.
Detail: Hill stated that Powell is a person of high integrity but worried the investigation could impact future presidential appointments to the Federal Reserve. He specifically mentioned the appointments made by President Trump.
Example: In a statement, Hill wrote, “Federal Reserve is led by strong, capable individuals appointed by President Trump, and this action could undermine this and future Administrations’ ability to make sound monetary public decisions.”
House Speaker Mike Johnson (R-La.) dismissed the notion that the justice Department was being weaponized against Powell.
Detail: johnson stated he did not believe the investigation was politically motivated.
Example: When asked by a reporter, Johnson said, ”of course not.”
Status of the Investigation (as of January 13, 2026)
As of January 13, 2026, the investigation remains ongoing, and no new official statements have been released by the Department of Justice or the Federal Reserve beyond initial reports in late 2023 and early 2024. The Department of Justice website does not currently list any updates regarding this specific investigation.
Detail: Initial reports in December 2023 indicated the Justice Department was reviewing financial disclosures made by Powell to determine if they complied with ethics rules. The focus reportedly centered on Powell’s past financial holdings and potential conflicts of interest related to his role at the Federal Reserve.
Example: The Wall Street Journal first reported on the investigation in December 2023, citing people familiar with the matter.