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The Fed: The One Power Center Trump Wasn’t Supposed to Touch // Redacted News
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Trump Administration Targets Federal Reserve as Powell Warns of Political Intimidation
A rare and explosive confrontation is unfolding between the Trump administration and the Federal Reserve, raising alarm across financial and political circles. Federal Reserve Chair Jerome Powell disclosed that he has been subpoenaed by the Department of Justice in connection with congressional testimony over costly renovations to Federal Reserve buildings, a move Powell says is being used as a pretext to pressure the central bank over interest rate policy.
In an unusual public statement, Powell warned that the threat of criminal charges has little to do with construction overruns or congressional oversight. Instead, he argued, the pressure campaign is aimed at influencing how the Federal Reserve sets interest rates. Powell framed the dispute as a fight over whether monetary policy will be guided by economic evidence or political coercion, calling the situation unprecedented in modern U.S. history.
A Central Bank Under Fire
The conflict comes as President Donald Trump has repeatedly criticized the Federal Reserve for keeping interest rates higher than he prefers. While the Fed is formally independent, Trump has openly pushed for rate cuts, blaming the central bank for slowing economic growth. Powell’s statement suggests that tensions have now escalated beyond rhetoric into direct legal pressure.
Supporters of the administration argue that the Fed should be held accountable for massive cost overruns, noting that the renovation project reportedly reached $2.5 billion. Critics counter that similar or worse waste across the federal government has rarely triggered such aggressive scrutiny, fueling suspicions that the investigation is politically motivated.
Critics Say the Fed Is No Innocent Party
While Powell cast the Fed as a guardian of the public interest, critics strongly dispute that portrayal. Economists and commentators argue that the Federal Reserve has played a central role in nearly every major economic crisis of the past century. From the Great Depression to the 2008 financial collapse and the COVID-era economic shutdowns, the Fed’s policies are blamed for fueling asset bubbles, inflation, and massive wealth transfers to financial elites.
During the COVID pandemic, the Federal Reserve injected trillions of dollars into the economy to finance lockdowns and emergency spending. Critics say this “blank check” approach insulated political leaders from fiscal consequences while leaving ordinary Americans to absorb the costs through inflation, reduced purchasing power, and economic instability.
Secrecy and Power Without Accountability
Another point of contention is the Fed’s extraordinary level of secrecy. Unlike most government agencies, the Federal Reserve operates largely behind closed doors, arguing that transparency would disrupt markets. Critics respond that this secrecy allows the Fed to manipulate economic outcomes without meaningful democratic oversight, despite controlling one of the most powerful levers in government.
Legal scholars have also raised constitutional questions. The U.S. Constitution grants Congress the power to coin money, but critics argue it does not authorize the creation of an independent central bank with broad authority over interest rates, credit, and monetary supply. That ambiguity has fueled long-standing claims that the Federal Reserve operates outside constitutional limits.
A Broader Reckoning With Government Power
The clash has reopened broader debates about government waste, corruption, and accountability. Critics point to trillions of dollars lost to fraud and mismanagement across federal agencies, including the military and social programs, questioning why scrutiny is selectively applied. The controversy has also revived calls to audit or dismantle the Federal Reserve altogether.
Some observers see the moment as a potential turning point. Previous crises, such as the 2008 financial meltdown, briefly united Americans across political lines in anger at Wall Street and central banking power before those movements fractured. Whether the current confrontation leads to lasting reform or dissolves into partisan conflict remains uncertain.
What Comes Next
As the Justice Department investigation proceeds, the stakes extend far beyond a renovation project or a single testimony. At issue is the balance of power between elected officials, unelected financial authorities, and the public. Whether the Federal Reserve emerges weakened, reformed, or unchanged could shape economic policy for years to come.
For now, the confrontation underscores a deeper question many Americans are asking more openly: who actually controls the economy, and who ultimately pays the price when that control goes wrong.
