Story perspectives

Trump Stands by Powell Amid DOJ Probe Uncertainty

1/15/2026

Summary

Story summary

U.S. President Donald Trump says he will not fire Federal Reserve Chair Jerome Powell amid the DOJ renovation probe.
He calls the situation a "holding pattern."
Trump named replacements, including former Federal Reserve Governor Kevin Warsh and National Economic Council Director Kevin Hassett, while ruling out Treasury Secretary Scott Bessent.

History

Historical Context

The Federal Reserve Reform Act of 1977 established the dual mandate of maximum employment and stable prices, enhancing the Fed's independence in monetary policy. This followed the 1913 Federal Reserve Act, which aimed to stabilize the banking system after financial panics. Trump's decision to retain Jerome Powell amid scrutiny highlights ongoing tensions between political leadership and central banking autonomy, influencing future monetary policy debates.

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Story summary

U.S. President Donald Trump says he will not fire Federal Reserve Chair Jerome Powell amid the DOJ renovation probe.
He calls the situation a "holding pattern."
Trump named replacements, including former Federal Reserve Governor Kevin Warsh and National Economic Council Director Kevin Hassett, while ruling out Treasury Secretary Scott Bessent.

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