Emails Reveal Epstein and Bannon Discussed Fed Chair Powell’s Removal in 2018

Newly uncovered documents from the Justice Department show that disgraced financier Jeffrey Epstein and former Trump advisor Steve Bannon exchanged emails in 2018 discussing the potential removal of Federal Reserve Chair Jerome Powell.

The emails, found among approximately 3 million pages of Justice Department documents, reveal a brief but pointed exchange about Powell’s future just a year after then-President Donald Trump had appointed him to lead the central bank.

In the correspondence, which had the subject line “Re: Trump has discussed firing Fed chief after latest interest rate hike: report,” Epstein explicitly endorsed Powell’s removal, writing: “Should have been done months ago too old!!!!”

The exchange took place during a tumultuous period for the Trump administration. Just two days prior, Defense Secretary James Mattis had submitted his resignation, sending shockwaves through Washington. However, Epstein downplayed this foreign policy development, suggesting that changes at the Federal Reserve were far more consequential.

“Getting rid of Powell much more important than Syria/Mattis. I guess Pompeo, only one left,” Epstein wrote in a follow-up email. He added that “Jared and Ivanka need to go,” referring to Trump’s daughter and son-in-law who served as advisors in the administration.

Bannon responded by questioning whether Powell or then-Treasury Secretary Steve Mnuchin should be removed, asking: “Can u get rid of Powell or really get rid of Mnuchin.” Epstein’s reply was straightforward, indicating Mnuchin should remain: “No, Mnuchin is ok.”

The timing of these revelations is particularly notable as they emerge while President Trump, now returning to office, has announced plans to pursue a criminal investigation into Powell. Trump has already named Kevin Warsh as his choice to be the next Federal Reserve Chair.

The discord between Trump and Powell has been well-documented throughout Trump’s first term, with the then-president frequently criticizing Powell’s monetary policy decisions, particularly interest rate increases that Trump believed were hampering economic growth. The Federal Reserve, designed to operate independently from political pressure, faced unprecedented public criticism from the White House during this period.

Powell, who was initially tapped by Trump in 2017 to replace Janet Yellen, has maintained that the Federal Reserve’s decisions are guided by its dual mandate of maximum employment and price stability, not political considerations.

The emails offer a rare glimpse into behind-the-scenes discussions about Federal Reserve leadership during the Trump administration. They also raise questions about Epstein’s level of access and influence within Trump’s circle, despite his notorious background. Epstein, who died in jail in 2019 while awaiting trial on sex trafficking charges, appears to have maintained connections with high-level political figures even after his 2008 conviction for soliciting prostitution from a minor.

Financial markets typically react strongly to uncertainty around Federal Reserve leadership, as monetary policy decisions have far-reaching impacts on interest rates, investment strategies, and the broader economy. The revelation of these discussions highlights the delicate balance between political leadership and the independence of financial institutions that has been a cornerstone of American economic policy.

With Trump now set to replace Powell and initiate an investigation, market watchers and economic analysts will be closely monitoring how this transition unfolds and what it means for the future direction of U.S. monetary policy.