Story perspectives

Powell Defends Fed's Independence Amid Trump's Pressure

1/12/2026

Summary

Story summary

Federal Reserve Chair Jerome Powell said he will stand firm against threats from the Department of Justice regarding a potential indictment.
Powell faces pressure from U.S. President Donald Trump to cut rates.
Powell said the indictment threat is not tied to a renovation project but challenges the Federal Reserve's independence in policy.
Trump's campaign against Powell includes personal attacks and moves against Federal Reserve Governor Lisa Cook.

History

Historical Context

The Glass-Steagall Act of 1933 established a separation between commercial and investment banking in response to the Great Depression, aiming to stabilize the financial system. This legislation reinforced the Federal Reserve's independence, a theme echoed today as Jerome Powell faces political pressures reminiscent of past tensions, notably during Donald Trump's presidency. The ongoing struggle for Fed autonomy remains vital for U.S. economic stability.

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Story summary

Federal Reserve Chair Jerome Powell said he will stand firm against threats from the Department of Justice regarding a potential indictment.
Powell faces pressure from U.S. President Donald Trump to cut rates.
Powell said the indictment threat is not tied to a renovation project but challenges the Federal Reserve's independence in policy.
Trump's campaign against Powell includes personal attacks and moves against Federal Reserve Governor Lisa Cook.

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