Trump-Powell Feud Intensifies as DOJ Probe Ends and Fed Leadership Remains

Donald Trump posted a graphic on social media showing a figure resembling Federal Reserve Chair Jerome Powell falling into a dumpster, captioned “‘Too Late’ is a DISASTER for America! Interest Rates too high!” The image reflects Trump’s demand for a federal funds rate near 1%, far below the Fed’s target range.

TND - The National Desk

Since April 2025 Trump has urged the Fed to cut rates, saying lower borrowing costs would ease the $38 trillion debt burden. In January 2026 the DOJ, led by U.S. Attorney Jeanine Pirro, opened a criminal investigation into Powell’s testimony on Fed-headquarters renovation overruns. A judge blocked the subpoenas in March 2026; Pirro then dropped the probe and referred the matter to the Fed’s Inspector General.

Reuters

Key dates: April 2025 – Trump calls for deeper rate cuts; Jan 2026 – DOJ launches investigation; Mar 2026 – Judge blocks subpoenas; Apr 2026 – Trump posts dumpster image and Powell says he will remain a Fed governor after his chair term ends May 2026; May 3 2026 – Pirro says the Inspector General’s audit will decide any further action, and Senator Thom Tillis welcomes the pause as “the way this process is supposed to work.”

Reuters

• Trump reiterated his demand for “the lowest rate in the world” and labeled high rates a disaster.

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• Pirro said she will defer to the Inspector General and step away if the audit finds no misconduct.

Reuters

• Tillis asserted that no crime occurred and praised the pause as proper procedure.

Reuters

• Powell noted he is “encouraged by recent developments” and is monitoring the process.

Powell remains Fed Chair as DOJ drops investigation amid Trump-era challenges

• Senate Majority Leader John Thune warned that “we don’t trifle with the Federal Reserve, with the central bank,” emphasizing its market role.

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Brookings monetary-policy director David Wessel warned that cutting rates to Trump’s target could spark “unwelcome inflation,” noting that lower rates tend to boost borrowing and demand faster than supply, raising prices.

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Reuters reports that Pirro dropped the criminal case after a judge blocked subpoenas; The New York Times notes she may reopen the probe pending Inspector General findings. No public evidence of wrongdoing has emerged, leaving the investigation’s outcome uncertain.

Reuters

• “‘Too Late’ is a DISASTER for America! Interest Rates too high!” — Donald Trump, Truth Social.

Washington Examiner

• “If there's something there, great - and if there isn't, I'll go home.” — Jeanine Pirro, CNN.

Reuters

• “we continue to litigate the issue, and we will litigate the issue” — Jeanine Pirro, CNN.

Reuters

• “I'm encouraged by recent developments, and I'm watching the remaining steps in this process carefully,” — Jerome Powell, Fed.

Reuters

General’s audit will decide if DOJ revives probe; confirmation of Kevin Warsh proceeds, and markets watch Fed meetings.

Reuters