Jerome Powell stands up to Donald Trump. Image: keystone
US Federal Reserve Chairman Jerome Powell has dismissed criminal investigations against him and a threatened indictment as an attempt to influence the work of the Federal Reserve.
01/12/2026, 04:5501/12/2026, 04:55
Powell announced that he would continue to “carry out his office with integrity and in the service of the American people.”
“The threat of impeachment is a result of the Federal Reserve setting interest rates in good faith in the public interest and not following the President’s preferences,” said the Chairman of the Federal Reserve (Fed).
According to Powell, the U.S. Department of Justice served subpoenas on the Fed on Friday and threatened to sue. Powell is alleged to have made false statements to the Senate in connection with the multi-year renovation of central bank buildings in Washington.
However, the head of the US Federal Reserve sees this as just an excuse: “It’s about whether the Fed can continue to set interest rates based on facts and economic circumstances – or whether monetary policy will instead be determined by political pressure or intimidation,” Powell continued.
Central banks are an important element in a market economy and, among other things, their task is to guarantee price stability by setting key interest rates.
Trump regularly criticizes Powell
US President Donald Trump has long been calling for a reduction in the key interest rate in order to stimulate the economy. The Federal Reserve recently reduced this in several steps – but that is not enough for Trump. As a result, Trump regularly insulted Powell and even talked about firing him.
It is unclear whether the president can actually fire the head of the independent central bank, who was confirmed by the Senate. Just a few weeks ago, Trump threatened to sue Powell for “incompetence.” (sda/dpa)