Listen to the article
President Trump’s Clash with Federal Reserve Chair Powell Sparks Republican Backlash
Federal Reserve Chair Jerome Powell has emerged as a formidable opponent to President Donald Trump’s pressure campaign, gaining unexpected support from Senate Republicans as tensions between the White House and the central bank escalate.
The Trump administration recently issued Justice Department subpoenas to the Fed and threatened criminal charges against Powell—a move that has prompted swift backlash even from the president’s strongest congressional allies.
“I know Chairman Powell very well. I will be stunned—I will be shocked—if he has done anything wrong,” said GOP Sen. John Kennedy of Louisiana, typically one of Trump’s most reliable Senate supporters.
The subpoenas concern Powell’s statements about a $2.5 billion renovation of two Federal Reserve office buildings, which Trump has criticized as excessive. Powell responded aggressively, releasing a video statement accusing the administration of using “pretexts” to pressure the Fed into cutting interest rates—a move Trump has repeatedly demanded.
“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 stated in the video.
Following this public stance, Powell activated the extensive network of relationships he’s cultivated on Capitol Hill since his 2018 appointment. He held multiple calls with Republican senators in the days after releasing the video.
“He knows his way around Congress,” noted Robert Tetlow, a former senior policy adviser at the Fed. “He gets in there, pets the dog, shoots the breeze, and has a way of getting people to like him, and he’s really good at it.”
This personal touch has yielded tangible results. Senator Thom Tillis of North Carolina, who has developed a friendly rapport with Powell, has vowed to withhold support for any Trump administration nominees to the Federal Reserve until the legal cloud surrounding the chair is resolved. Alaska Senator Lisa Murkowski has joined this effort.
“I look at the situation with Jay Powell and this supposed investigation of the overhaul of their offices going over there as grounds to do nothing but intimidate, threaten and coerce,” Murkowski told reporters.
Even those who disagree with Powell’s monetary policy decisions have defended his character. Pennsylvania Senator Dave McCormick said he agrees “with President Trump that Chairman Powell has been slow to cut interest rates” but added that he doesn’t “think Chairman Powell is guilty of criminal activity.”
Senate Majority Leader John Thune warned that the investigation “better be real” and “better be serious,” while House Financial Services Chair French Hill praised Powell as “a man of integrity with a strong commitment to public service.”
Powell’s bipartisan credibility stems from decades in Washington. A Republican, he worked at the Treasury Department during George H.W. Bush’s administration and later at the Bipartisan Policy Center from 2010 to 2012, where he urged congressional Republicans toward compromise during budget negotiations with President Barack Obama.
Obama appointed Powell to the Fed’s governing board in 2012. Trump then elevated him to the Chair position in 2018, and President Biden reappointed him in 2022—making him one of the few high-profile officials to serve across three administrations of different parties.
Powell’s approach to managing Trump’s criticism has been consistent. During Trump’s first term, when the president frequently attacked Powell over interest rate hikes in 2018, the Fed chair largely ignored the personal attacks and avoided engaging in public disputes with the White House.
This strategy has strengthened his standing on Capitol Hill. Powell’s public schedule reveals his commitment to congressional relationships—in just the month following Trump’s inauguration last year, he met with or spoke to 27 senators from both parties.
Trump has insisted he was unaware of the Justice Department investigation into Powell. When asked by CBS News whether the subpoenas were retaliatory, Trump said Tuesday, “I can’t help what it looks like.”
The conflict comes amid a broader pattern of Trump targeting officials he perceives as adversaries, including an attempted firing of another Fed board member, Lisa Cook. The Supreme Court has temporarily allowed Cook to retain her position and will hear arguments on her case this week.
“So far it looks like this has been a misstep for the administration,” observed Lev Menand, a Columbia University law professor and author of a book about the Fed. “This attempt to go after Jay Powell with a potential criminal indictment is leading to significant resistance from elected officials even within the Republican Party.”
As this confrontation unfolds, it highlights the tensions between presidential authority and the Federal Reserve’s independence—a principle that Powell has repeatedly emphasized as crucial to the central bank’s ability to make difficult economic decisions without political interference.
Fact Checker
Verify the accuracy of this article using The Disinformation Commission analysis and real-time sources.
18 Comments
This dispute over the Fed’s building renovations seems like a weak pretext for the Trump administration to attack Powell and the central bank. It’s good to see Republicans standing up for the Fed’s independence and pushing back against the president’s pressure tactics.
Absolutely. The White House’s attempts to undermine the Fed’s autonomy through dubious means like this are concerning. I’m glad to see lawmakers from both parties recognize the importance of preserving the central bank’s nonpartisan role.
This situation underscores the delicate balance between the executive branch and the independent Federal Reserve. While Trump may want more direct influence, the GOP’s defense of Powell suggests they recognize the need to preserve the Fed’s nonpartisan role.
Exactly. The Fed’s ability to make decisions free from political pressure is critical for maintaining public trust in monetary policy. This clash highlights the ongoing tension between the White House and the central bank.
The growing rift between Trump and his Republican allies over the Fed chair is an interesting development. It highlights the importance of the central bank’s independence from political interference, even from the president’s own party. Curious to see how this plays out.
Agreed, this is a significant break from the typical Republican support for Trump’s agenda. It demonstrates the value they place on the Fed’s autonomy in setting monetary policy.
The Trump-Powell clash is a fascinating power struggle, with Republicans unexpectedly defending the Fed chair against the president’s demands. This suggests the GOP understands the need to maintain the central bank’s independence, even if they don’t always agree with its decisions.
Well said. The Republican support for Powell in this dispute highlights the recognition that the Fed must be able to operate without undue political influence, regardless of which party controls the White House.
It’s refreshing to see Republicans stand up to Trump’s attempts to strongarm the Fed. Powell has shown commendable leadership in resisting the administration’s demands, and I’m glad to see lawmakers from the president’s own party backing the central bank’s independence.
Agreed, this is an important moment for the integrity of the Federal Reserve. The GOP’s support for Powell sends a clear message that the central bank’s role should remain nonpartisan and insulated from political interference.
It’s interesting to see Republicans backing Fed Chair Powell against Trump’s pressure tactics. The Fed’s independence is crucial for monetary policy stability, even if we don’t always agree with their decisions.
I agree, the Fed needs to be able to make decisions based on economic data rather than political considerations. Maintaining that independence is important.
This is a rare split between Trump and his GOP allies. The Fed chair’s role should be nonpartisan, focused on sound economic management rather than political agendas. Let’s hope this backlash from Republicans helps uphold the Fed’s autonomy.
Absolutely. The Fed needs to be able to set policy without fear of political retaliation. This situation highlights the importance of maintaining its independence.
This dispute over the Fed’s building renovations seems like a flimsy pretext to attack Powell. It’s clear the real issue is Trump’s dissatisfaction with the Fed’s interest rate decisions. I hope cooler heads prevail and the central bank’s independence is respected.
You make a good point. This appears to be more about Trump’s desire to influence the Fed’s policies than any genuine concerns over spending. Maintaining the Fed’s nonpartisan role is crucial.
The Trump administration’s attempts to pressure the Fed are concerning. Threatening criminal charges against Powell crosses a line and undermines the institution’s credibility. I’m glad to see Republicans pushing back on this heavy-handed approach.
Agreed, the White House should not be trying to weaponize the Justice Department against the central bank. This sets a dangerous precedent that could politicize monetary policy.