Story perspectives

Trump's Fury at Powell Risks Fed Independence, Lawmakers Warn

1/15/2026

Summary

Story summary

U.S. President Donald Trump escalated his criticism of Federal Reserve Chair Jerome Powell, calling him "incompetent or crooked."
The remarks come during a Justice Department investigation into Powell's congressional testimony about a $2.5 billion renovation of the Federal Reserve's headquarters.
Powell warned the investigation threatens Fed independence.
Bipartisan lawmakers, including Senator Thom Tillis, expressed concern about the probe's implications for the Fed's autonomy.

History

Historical Context

The Federal Reserve Act, enacted on December 23, 1913, established the Federal Reserve System to stabilize the U.S. economy following the Panic of 1907. This independent central bank manages monetary policy and regulates banks, impacting economic stability. Criticism of its autonomy, particularly from political figures like President Trump regarding Jerome Powell, reflects ongoing tensions about the Fed's role in governance and economic management.

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Story summary

U.S. President Donald Trump escalated his criticism of Federal Reserve Chair Jerome Powell, calling him "incompetent or crooked."
The remarks come during a Justice Department investigation into Powell's congressional testimony about a $2.5 billion renovation of the Federal Reserve's headquarters.
Powell warned the investigation threatens Fed independence.
Bipartisan lawmakers, including Senator Thom Tillis, expressed concern about the probe's implications for the Fed's autonomy.

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