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SeriousAbuse of PowerFirst Term

Relentless Attacks on Jerome Powell and Federal Reserve Independence

August 23, 2019Updated January 1, 202610 sources17 key facts

Trump has repeatedly attacked Federal Reserve Chair Jerome Powell (whom he appointed) and threatened Fed independence, a cornerstone of economic stability. In 2019, asked 'who is our bigger enemy, Jay Powell or Chairman Xi?“ In second term, called Powell 'that jerk,” 'stupid person,“ and 'major loser.” DOJ launched criminal investigation of Powell in 2026. Trump threatened to fire Powell (legally cannot), discussed it with GOP lawmakers, showed them draft firing letter.

Bipartisan group of economists including former Fed chairs condemned attacks as 'unprecedented attempt to undermine" Fed independence. Experts warn attacks could cause higher inflation, mortgage rates, market volatility.

Key Facts14
  • 01Repeatedly demanded Powell lower interest rates via social media throughout presidency
  • 02Called Powell an 'enemy,' 'fool,' 'incompetent,' 'stupid person,' 'that jerk,' 'major loser'
  • 032019: Privately discussed with White House counsel possibility of firing Powell
  • 04July 2025: Asked GOP lawmakers if he should fire Powell, showed them draft firing letter
  • 05Trump threatened lawsuit against Powell over Fed headquarters renovation costs
  • 06January 2026: DOJ launched criminal investigation into Powell
  • 07Powell directly connected DOJ probe to Trump's complaints about interest rate decisions
  • 08Fed Chair can only be removed 'for cause' (serious misconduct) under Federal Reserve Act of 1913
  • 09Supreme Court reaffirmed in May 2025 that Trump lacks authority to arbitrarily fire Fed Chair
  • 1013 top economists including Bernanke, Greenspan, Yellen condemned attacks on Fed independence
  • 11Economists warn attacks could trigger 'severe reaction in markets' and higher mortgage rates
  • 12Mark Zandi (Moody's): 'There's nothing but downside here for investors and consumers'
  • 13Experts: Most public and aggressive presidential attacks on Fed in modern history
  • 14Fed independence established to prevent political manipulation of monetary policy
Sources10
Verified across 10 sources
—News Reports
Trump tweets: 'Who is our bigger enemy,' Fed Chairman Powell or Chinese President Xi?→Trump attacks Powell again amid Fed independence fears: 'That jerk will be gone soon'→Trump's increasingly aggressive attacks on Powell aren't what you think→Trump keeps pressuring the Fed to cut rates. Here's why its independence matters→Trump asked GOP lawmakers if he should fire Fed Chair Jerome Powell→What the Justice Department investigation of Fed Chair Powell may mean for your money→
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