Trump slams Fed Chair Jerome Powell as 'incompetent or crooked' amid DOJ criminal probe, raising concerns over Federal Reserve independence and policy decisions.
Trump slams Fed Chair Jerome Powell as 'incompetent or crooked' [Photo: X]
US President Donald Trump intensified his feud with Federal Reserve Chair Jerome Powell, calling him 'Incompetent or crooked' as a Justice Department (DOJ) criminal investigation into Powell grows. The high‑stakes conflict comes amid deepening political tensions over interest‑rate decisions and alleged cost overruns in renovations at the Federal Reserve’s headquarters.
Trump’s public remarks and support for the probe have sparked criticism from lawmakers, economists and global financial leaders concerned about the independence of the US central bank.
Trump’s comments followed questions on whether the DOJ investigation could damage public trust in the Federal Reserve. He complained that a multibillion‑dollar renovation of the Fed’s Washington headquarters was far over budget and blamed Powell personally.
“He’s billions of dollars over budget, so either he’s incompetent, or he’s crooked,” Trump said while departing the White House for an economic event in Detroit. “I don’t know what he is, but he certainly doesn’t do a very good job.”
Trump also criticized Powell’s approach to interest‑rate policy, suggesting the Fed has been too slow to cut rates — a stance Powell and many economists reject as political pressure.
Jerome Powell confirmed that the DOJ had served grand jury subpoenas and indicated a potential criminal indictment related to his congressional testimony on Fed office renovations.
He defended the Fed’s decision-making, “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said.
“No one, certainly not the chair of the Federal Reserve, is above the law. But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.” Jerome Powell emphasized that political pressure should not dictate interest rates and that the Fed remains committed to serving the public interest.
The DOJ criminal investigation was triggered by grand jury subpoenas served to the Federal Reserve, reportedly over Powell’s testimony to Congress about the cost of renovating the Fed’s headquarters, a project originally estimated at lower costs but which rose into the billions. Jerome Powell described the threat of indictment as a significant escalation and an attempt to influence monetary policy.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said in a video statement.
Powell defended the Fed’s role and warned that political interference could undermine central bank independence, a cornerstone of US economic policy.
Trump’s attack has drawn bipartisan criticism. Some Republican lawmakers have voiced concern that the DOJ probe risks weakening the Federal Reserve’s autonomy. Senator Thom Tillis pledged to block confirmations for future Fed leaders until the investigation concludes, and others have called for the inquiry to be dropped.
Global central banks and leading financial institutions have also rallied around Powell, emphasizing that central bank independence is critical for stable monetary policy and market confidence. Wall Street leaders warn that politicizing the Fed could fuel inflation expectations and economic instability.
JP Morgan Chase CEO Jamie Dimon specifically cautioned that attempts to weaken the Fed’s decision‑making could backfire and lead to higher inflation in the long run.
Despite extensive criticism, Trump and some advisers have defended the DOJ’s actions. A White House economic adviser stated on CNBC that scrutiny of the renovation project was justified and distinguished oversight from political influence.
Trump also contends that the renovation cost overruns, which he claims are far higher than official estimates, warrant investigation, even as some allies acknowledge the need for caution.
The escalating dispute touches on deeper questions about Federal Reserve independence, a principle designed to insulate monetary policy from political pressure. Many economists and former central bank officials argue that using criminal probes to challenge Federal Reserve leadership could set a risky precedent, potentially undermining confidence in US economic institutions.
Jerome Powell has maintained his commitment to the rule of law and transparency, even as he rejects suggestions that the Fed’s decisions were shaped by political incentives rather than economic data and expert judgment.
