Posted on 01/12/2026 11:42:42 AM PST by RandFan
Financial markets have taken fright amid a resumption of the row over US central bank independence between its chair and the Trump administration.
It emerged overnight that the White House was threatening to indict Jerome Powell over comments he made to Congress in relation to renovation cost over-runs at the Federal Reserve buildings in Washington DC.
Mr Powell, who has been locked in a feud with Mr Trump over the pace of interest rate cuts since his second term as president began, responded by describing the action as a "pretext" to gain more influence over US monetary policy.
(Excerpt) Read more at news.sky.com ...
“Very difficult to reign in inflation if the Fed is not working as it should.”
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Well Trump’s “big beautiful bill” is adding $3 trillion to the budget deficit so he isn’t exactly reining in inflation either. I don’t doubt the Fed is corrupt and personally want to get rid of it altogether which unfortunately will only happen after a revolution. Politicians are too addicted to deficit spending. But there’s no point in getting rid of Powell now when his term ends soon anyway.
Powell seemed pretty direct in his statement. Doubtful he’s losing sleep over this.
The new factor is that Tillis has put a halt to any more Fed nominations being approved. He’s not running for re-election so there could conceivably be (worst case) no Fed nominations being approved until next year if the investigation takes that long.
Doubt it goes that long.
So he’s allowed to lie under oath?
One thing Trump knows is building and he can spot a rat in the construction a mile away. Probably some democrats are obviously milking the cost over runs
Because Powell is not the target. The fed itself is
I worked with a guy who had been a commodities trader before I knew him. He was friends with an analyst who wrote a negative report on Trump’s casinos. Trump raised hell and got the analyst fired...even though in the end the analyst was right.
Trump is used to throwing his weight around and that’s usually a good thing since he’s trying to save the USA however maybe it isn’t always the best idea.
Some on this forum should bear in mind trump MO and art of the deal. Powell himself is not the end target. It’s the fed. It’s the fiat debt-based dollar.
His spending $3 billion + on a vanity project to revamp fed HQ is a DISGRACE
People need to know the basis of Trumps call for possible criminal charges!
Isn’t this the real issue (see link) and not Fed policy. Trump maybe using it as leverage. There’s evidence Powell has completely mismanaged this activity. Mismanage in the sense of deliberately breaking procurement law.
They don’t need a “palace” which is what Powell wants!
I don’t think you are aware of what Powell has actually done….with taxpayer money…to merit Trumps charges of criminality. BILLIONS in spending! And lying to Congress when it was questioned.
How much overspending on “ renovations” is enough to merit disciplinary action? Powell’s personal vanity, ineptitude or both?
Forget how much taxpayers have suffered from his politicization of decisionmaking on interest rates, Bessent could quantify it for us. Under current interest rates we are paying $1.4 trillion interest on the debt.
Powell will stay on the Fed board even when he steps down.
Finally someone other then me points to the real issue!
When we’re $38 trillion in debt I don’t think the Fed building nor the WH ballroom should have been renovated at this time. If fraud was involved on the part of Powell then sure we should investigate it.
Bad move. Amazing how the only government officials investigated for wrongdoing seem to be ones Trump has a beef with. (and yes, the situation was reversed before last Jan 20).
Maybe you should run in 2028.
Maybe that's a good idea. Maybe not.
But there is absolutely no constitutional basis for such an arrangement. I suspect THIS is the bigger issue for the Trump administration than interest rate policy.
2 and a half billion to renovate a building. Powell started it by authorizing it and then lying about it. No Kings included the Fed.
The increase results from a projected $4.5 trillion decrease in federal revenues (primarily from extending 2017 tax cuts and new tax breaks) and a net decrease in direct spending of $1.1 trillion (from cuts to programs like Medicaid and student loans).
It is misleading to pretend that not increasing taxes causes a deficit. Additionally much of the projected deficit is based on r”esulting higher interest rates” but those higher rates are nowhere in sight.
Economists and economic estimators use faulty tools and leaps of faith based on principles deunked by historical record.
The renovation of the WH Ballroom was gifted, not $1 federal/taxpayer spent. Gifts are given on the benefactors time table & there is no “should” involved in this project unlike the complete flagrant waste involved in the the Fed renovations.
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