Fed Chair Jerome Powell Spells Out Trump's Threats To Indict Him

“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation,” Powell said.
By Susie Madrak — January 12, 2026

This is stunning -- yet is it shocking enough for Wall Street to finally speak up with one voice and act to prevent Trump from running monetary policy? I doubt it. He's making too much money for them.Via The LA Times:

WASHINGTON — Federal Reserve Chair Jerome Powell said Sunday the Department of Justice has served the central bank with subpoenas and threatened it with a criminal indictment over his testimony about the Fed’s building renovations.

The move represents a major escalation in President Trump’s battle with the Fed, an independent agency he has repeatedly attacked for not cutting its key interest rate as quickly as Trump prefers.

In a video statement, Powell said the criminal charges being threatened are “pretexts” to undermine the Fed’s independence when it comes to setting interest rates.

“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation,” Powell said.

There goes the bond market!

Sen Tillis (R-NC): Trump is trying to end the independence of the Fed through blackmail. This must stop.

— Scott Horton (@robertscotthorton.bsky.social) 2026-01-12T01:04:00.285Z

NEW: The Times is reporting that the Fed was just subpoenaed over Powell's testimony of the renovation project.

— Mueller, She Wrote (@muellershewrote.com) 2026-01-12T01:09:49.248Z

Holy shit moment. Good statement. The corrupt authoritarians and oligarchs are at the gates. There’s no alternative to fierce resistance and putting down their lawless crusade against the American Republic. x.com/federalreser...

— Josh Marshall (@joshtpm.bsky.social) 2026-01-12T01:23:33.043Z

End NATO. End the world trading system. End the post war international system. End the dollar as a reserve currency. Reverse the social and electoral reforms of the past 100 years. End the economic reforms of both Roosevelts. Trump’s goal is erase the past 125 years of US and world history.

— David Rothkopf (@djrothkopf.bsky.social) 2026-01-12T00:22:07.977Z

i think powell's response here is a demonstration of the folly of the idea that democratic accountability requires presidential control. what if the president is not acting in the public interest? you want independent agencies to be able to push back and pursue their *congressional mandate*

— jamelle (@jamellebouie.net) 2026-01-12T01:43:14.770Z

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