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Trump vs. Federal Reserve Independence

Trump's sustained pressure on Fed Chair Jerome Powell, threats of removal, and battles over interest rate policy and board appointments

Senate Confirms Kevin Warsh to Lead Federal Reserve, Replacing Powell

Illustration accompanying article: Senate Confirms Kevin Warsh to Lead Federal Reserve, Replacing Powell
  • The Senate confirmed Kevin Warsh as chair of the Federal Reserve on Wednesday in a largely party-line 54-45 vote, replacing Jerome Powell at a fraught moment for the U.S. economy.
  • Warsh assumes leadership with inflation at 3.8% in April — above the 2% target for five years — and gas prices up 50% from the war in Iran; three rate-setting committee members dissented over language suggesting the next move would be a cut, a signal that lowering rates will not be easy.
  • Democrats criticized Warsh for not fully disclosing his wealth, estimated at over $100 million, and for his past calls to limit the Fed’s communications; Sen. Elizabeth Warren called him a “sock puppet” for Trump.
  • Jerome Powell, Warsh’s predecessor, plans to remain a Fed governor until a Justice Department investigation into a building renovation concludes — the first extended post-chair board tenure since 1948 — raising the prospect of conflicting leadership at the central bank.
 3 MIN READ

Senate confirms Kevin Warsh as Federal Reserve chairman

Illustration accompanying article: Senate confirms Kevin Warsh as Federal Reserve chairman
  • The U.S. Senate confirmed President Donald Trump’s nominee Kevin Warsh as chair of the Federal Reserve by a 54-45 vote on Wednesday.
  • Warsh, 56 and a former top Fed official, will replace Jerome Powell at an unusually difficult time for the central bank.
  • Inflation has stayed above the Fed’s 2% target and has risen faster amid higher gas prices.
  • A Senate investigation into Powell’s Senate testimony about a building renovation was dropped in April, clearing the path for Warsh’s confirmation.
  • Warsh faced criticism from Democrats including Sen. Elizabeth Warren, who questioned whether he would act independently of Trump.
 3 MIN READ
Illustration accompanying article: Senate Banking advances Kevin Warsh to lead Fed, on 13-11 party-line vote

Kevin Warsh's Public Guardians Sound the Alarm

2026-05-30

Kevin Warsh is preparing a creditor-class wealth transfer disguised as monetary reform, and two Federal Reserve governors are right to blow the whistle on the damage it will cause.

Criminal probe spotlights whether Powell stays on Fed board after May

2026-01-16

The Justice Department’s investigation into Federal Reserve Chair Jerome Powell has revived a question that will play out at the central bank in coming months: whether Powell will leave the Fed when his chair term ends on May 15, or remain as a governor. Powell’s chair term ends in May, but his separate term on the Fed’s seven-member board lasts until Jan. 31, 2028, a timeline that could become a hinge for U.S. monetary policy.

Wall Street closes at records as DOJ subpoena of Fed stirs inflation fears

2026-01-12

U.S. stock indexes closed at records Monday even as financial markets absorbed the shock of a Justice Department subpoena targeting the Federal Reserve and a threat of criminal indictment against Fed Chair Jerome Powell — conduct Powell said was retaliation for the central bank's decision to set interest rates independently of White House preferences. The S&P 500 gained 0.2% to 6,977.27, the Dow Jones Industrial Average recovered an early loss of nearly 500 points to add 86 points and close at 49,590.20, and the Nasdaq composite gained 0.3% to 23,733.9.

Trump DOJ threatens Powell with criminal charges in escalating battle over Fed independence

2026-01-12

The Trump administration's Justice Department threatened Federal Reserve Chair Jerome Powell with criminal indictment over testimony he gave about the central bank's headquarters renovation, escalating a months-long campaign to exert greater control over the institution and its interest-rate decisions, the Associated Press reported. Powell, in a departure from his previous responses to Trump administration pressure, called the criminal charge threat mere "pretexts" to undermine the Fed's independence on rate policy.

Republican senators and ex-Fed chairs rally against DOJ investigation of Powell

2026-01-12

The Trump administration's criminal investigation of Federal Reserve Chair Jerome Powell drew swift condemnation Monday from Republican senators, three former Fed chairs, and a coalition of top economists, who called the Justice Department's subpoenas an unprecedented attempt to use prosecutorial power to undermine the central bank's independence.

DOJ threatens Powell with criminal indictment as Trump escalates pressure on the Fed

2026-01-12

The Justice Department threatened Federal Reserve Chair Jerome Powell with criminal indictment over his congressional testimony about the central bank's building renovation project, Powell said Sunday — a move he characterized as a "pretext" to undermine the Fed's independence in setting interest rates. The threat, disclosed as U.S. financial markets opened broadly lower Monday, represents the administration's most direct legal challenge yet to the institutional autonomy of the country's central bank.

Trump administration targets political opponents; Powell and Fed the latest

2026-01-12

The Justice Department has subpoenaed the Federal Reserve and threatened criminal indictments of Chair Jerome Powell after his Senate Banking Committee testimony defending the central bank's independence, Powell said Sunday in a video statement. Powell, whom President Donald Trump appointed as Fed chair in 2017, called the action a "pretext" to weaken the Fed's historic independence to set monetary policy without presidential influence. Trump told NBC News over the weekend that he knew nothing about the inquiry.

Trump DOJ subpoenas Federal Reserve, threatens Powell with criminal indictment

2026-01-12

The Trump administration's Justice Department has subpoenaed the Federal Reserve and threatened Fed Chair Jerome Powell with criminal indictment, escalating the president's confrontation with the independent central bank over cost overruns in a $2.5 billion renovation of its Washington headquarters. Powell, abandoning an earlier posture of publicly ignoring Trump's criticism, said Sunday that the criminal-charges threat is a "pretext" for the administration to seize control of U.S. interest rate policy. White House press secretary Karoline Leavitt told reporters that Trump did not direct the Justice Department to investigate Powell; Trump said on NBC News that he knew nothing about the investigation.

DOJ subpoenas Federal Reserve, threatens Powell with criminal indictment

2026-01-12

The Department of Justice has served the Federal Reserve with subpoenas and threatened Chair Jerome Powell with criminal indictment over his June testimony about the central bank's $2.5 billion office renovation, Powell announced Sunday. Powell called the threat a "pretext" to coerce the Fed into setting interest rates at the president's direction rather than based on economic evidence. The move represents an unprecedented escalation in President Donald Trump's sustained campaign against the independent monetary authority.

Central bankers back Fed Chair Powell amid Trump feud over Fed independence

2026-01-12

Central bankers from around the world said Tuesday they “stand in full solidarity” with Federal Reserve Chair Jerome Powell as President Donald Trump escalated his confrontation with the Fed, including a Justice Department investigation and threats of criminal charges. The heads of nine national central banks, including European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey, issued a statement supporting the Fed’s independence and emphasizing rule of law and democratic accountability.

Trump admin threatens criminal charges over Powell testimony, AP reports

2026-01-12

The U.S. Justice Department has threatened the Federal Reserve with a criminal accusation tied to testimony by Fed Chair Jerome Powell this summer, according to an Associated Press report published Jan. 12. The threat is described as part of an effort by the Trump administration to exert more control over the Fed’s independence.

Wall Street warns Trump as he proposes credit card rate cap

2026-01-12

Wall Street executives urged President Donald Trump to stop attacking the Federal Reserve and the credit card industry after the administration proposed a one-year 10% cap on credit card interest rates. The comments came as Trump said he was not backing down, and as major banks reported quarterly results.

DOJ investigation of Fed Chair Powell sparks backlash among lawmakers

2026-01-11

The Trump administration’s criminal investigation of Federal Reserve Chair Jerome Powell prompted backlash from Republicans in Congress and defense from former Fed leaders on Monday, the day Powell revealed subpoenas and described them as “pretexts” to pressure him on interest-rate cuts. The scrutiny is unfolding as Powell’s term as chair ends in May and as the White House prepares to nominate a successor.

Powell says DOJ subpoenaed Fed, warns of criminal indictment

2026-01-11

Federal Reserve Chair Jerome Powell said the U.S. Department of Justice served the central bank with subpoenas and threatened a criminal indictment over his testimony this summer about renovations to Fed buildings. In a video statement Sunday, Powell said the threat is aimed at undermining the Fed’s independence in setting interest rates rather than following political preferences.

Trump escalates Justice probe of Fed, threatens charges over Powell testimony

2026-01-11

President Donald Trump has escalated his confrontation with the Federal Reserve, with the Justice Department investigating and serving subpoenas to the independent central bank and threatening a criminal indictment, according to a statement from Fed Chair Jerome Powell. The dispute is centered on Powell’s testimony to Congress in June about the cost of a renovation of Fed buildings in Washington.

Trump escalates pressure on Fed independence with Powell indictment threat

2026-01-11

The Justice Department has threatened to seek a criminal indictment against Federal Reserve Chair Jerome Powell over testimony he gave this summer about the Fed’s building renovations, Powell said over the weekend. The comments add to concerns that President Donald Trump has pushed for greater control over the independent central bank, after he repeatedly attacked Powell for cutting rates and questioned the Fed’s handling of a $2.5 billion renovation project.

Wall Street hits records as investors weigh Powell-DOJ feud

2026-01-11

Wall Street rose to more records Monday after shaking off worries about a deepening feud between the White House and the Federal Reserve. The S&P 500 added 0.2% to its prior all-time high, while the Dow recovered from an early loss and the Nasdaq gained 0.3%.

CBO projects Fed rate cuts in 2026 as Treasury yields, mortgage costs set to rise

2026-01-08

The nonpartisan Congressional Budget Office projected Thursday that the Federal Reserve will cut its benchmark interest rate in 2026, with the key rate settling at 3.4% by the end of President Donald Trump's term in 2028. The projection carries a significant caveat for home buyers: even as short-term rates fall, the 10-year Treasury yield — the benchmark that sets mortgage rates — stood at 4.15% on January 8 and is projected to climb to 4.3% by the fourth quarter of 2028, meaning mortgage borrowing costs could increase over the next two years.

December Fed rate cut split officials over jobs vs. inflation, minutes show

2026-01-01

Federal Reserve officials voted to cut the central bank’s key interest rate by a quarter point earlier this month, but the decision produced unusual dissent and exposed disagreements over whether weak hiring or still-elevated inflation posed the bigger risk to the economy, minutes released Tuesday showed. The Fed cut the rate at its December 9-10 meeting to about 3.6%, a level described as the lowest in nearly three years.