Trump Admin Threatens Fed Chair Jerome Powell with Indictment Over Testimony

The man who gave him the job now wants him behind bars. Federal Reserve Chairman Jerome Powell has revealed that the Trump Administration threatened him with criminal indictment over his testimony to Congress in 2025. Powell described the move as a blatant act of political intimidation, marking a historic low in the relationship between the White House and the central bank.

The Trump Fed Chair Powell Indictment Threat and Institutional Independence

The friction between President Donald Trump and Chairman Powell isn't new, but it has reached a boiling point. Since his return to power, Trump has been vocal about his desire for lower interest rates and greater executive control over the Fed's decision-making process. Powell, however, has consistently defended the Fed's mandate to remain independent from political cycles.

According to reports from Boing Boing, the administration's threat specifically targets Powell's statements made during congressional hearings last year. While the exact legal grounds for such an indictment remain unclear, legal experts suggest that using criminal charges to influence monetary policy would be an unprecedented expansion of executive power.

Historical Context of the Conflict

Markets have reacted with unease to the news. The prospect of a sitting Fed Chair facing criminal charges for his official duties could undermine the U.S. Dollar's status as the global reserve currency. If investors believe the Fed's independence is compromised, the risk premium on U.S. assets could rise significantly.