Federal Reserve Chair Jerome Powell has sounded the alarm, warning the CEOs of America's largest corporations that Donald Trump's authoritarianism is no longer just a variable to be modeled - it's a threat to their independence. In a scathing video statement, Powell hit back against the Justice Department's attempts to weaponize its authority and punish him for refusing to lower interest rates as quickly as Trump demanded.
The real reason behind the grand jury subpoenas, however, is far more sinister. The Trump administration wants to intimidate Powell into bending monetary policy to its whims, disregarding the long-standing principle of central bank independence that prevents presidents from manipulating interest rates to suit their personal interests.
Powell's bravery in standing up to the president comes as no surprise to those who have watched Trump's attacks on the Fed and its chair for months. The Republican has been mocked publicly, accused of incompetence, and demanded lower interest rates as if the Federal Reserve exists solely to serve his bidding. When Powell refused to comply, Trump and his allies searched for a pretext to exact revenge.
The real reason behind the subpoenas is not about accurately characterizing details about the Fed's renovation project but rather about punishing Powell for refusing to lower interest rates as quickly as Trump demanded. This brazen assault on the Fed's independence is staggering, especially given that Trump has never accepted the basic premise of central bank independence.
Andrew Levin, a Dartmouth economist and former Federal Reserve official, noted in his policy brief that the renovation project was initially intended to be neutral, with no VIP amenities or special perks. However, when Trump allies pounced on the report, it became a target for their attacks, with some media outlets running sensationalized headlines about a "Palace of Versailles."
The real victims here are not Powell but the very fabric of American democracy itself. The Justice Department's weaponization of its authority is a chilling example of how the rule of law can be used to silence those who dare to challenge the president.
Trump's attacks on Powell and the Fed have been escalating for months, with the president claiming that the chair is "not very good at the Fed" and "not very good at building buildings." However, as Sen. Chris Murphy pointed out, the media has no obligation to report what Trump says as straight news.
The real danger here lies in the way Trump's behavior is undermining the independence of the Federal Reserve and other institutions. If investors start to believe that the Fed is a political plaything, they will demand a premium on interest rates, leading to higher borrowing costs for consumers and businesses alike.
Powell's bravery in standing up to Trump has sent a message that defying presidential overreach comes with consequences. By refusing to back down, he has put himself at risk of being punished by the very administration he is trying to hold accountable. This is no longer just about one man but a broader pattern of authoritarian escalation that threatens the very foundations of American democracy.
For years now, America's leading executives have been intimidated into silence or complicity. But Powell's stand has bridged the gap between ordinary people and elites, showing that even those in positions of power can find the courage to speak truth to power. As his term as a Fed governor runs until 2028, it remains to be seen whether he will stay on to defend the independence of the Federal Reserve or retire quietly into obscurity.
The real reason behind the grand jury subpoenas, however, is far more sinister. The Trump administration wants to intimidate Powell into bending monetary policy to its whims, disregarding the long-standing principle of central bank independence that prevents presidents from manipulating interest rates to suit their personal interests.
Powell's bravery in standing up to the president comes as no surprise to those who have watched Trump's attacks on the Fed and its chair for months. The Republican has been mocked publicly, accused of incompetence, and demanded lower interest rates as if the Federal Reserve exists solely to serve his bidding. When Powell refused to comply, Trump and his allies searched for a pretext to exact revenge.
The real reason behind the subpoenas is not about accurately characterizing details about the Fed's renovation project but rather about punishing Powell for refusing to lower interest rates as quickly as Trump demanded. This brazen assault on the Fed's independence is staggering, especially given that Trump has never accepted the basic premise of central bank independence.
Andrew Levin, a Dartmouth economist and former Federal Reserve official, noted in his policy brief that the renovation project was initially intended to be neutral, with no VIP amenities or special perks. However, when Trump allies pounced on the report, it became a target for their attacks, with some media outlets running sensationalized headlines about a "Palace of Versailles."
The real victims here are not Powell but the very fabric of American democracy itself. The Justice Department's weaponization of its authority is a chilling example of how the rule of law can be used to silence those who dare to challenge the president.
Trump's attacks on Powell and the Fed have been escalating for months, with the president claiming that the chair is "not very good at the Fed" and "not very good at building buildings." However, as Sen. Chris Murphy pointed out, the media has no obligation to report what Trump says as straight news.
The real danger here lies in the way Trump's behavior is undermining the independence of the Federal Reserve and other institutions. If investors start to believe that the Fed is a political plaything, they will demand a premium on interest rates, leading to higher borrowing costs for consumers and businesses alike.
Powell's bravery in standing up to Trump has sent a message that defying presidential overreach comes with consequences. By refusing to back down, he has put himself at risk of being punished by the very administration he is trying to hold accountable. This is no longer just about one man but a broader pattern of authoritarian escalation that threatens the very foundations of American democracy.
For years now, America's leading executives have been intimidated into silence or complicity. But Powell's stand has bridged the gap between ordinary people and elites, showing that even those in positions of power can find the courage to speak truth to power. As his term as a Fed governor runs until 2028, it remains to be seen whether he will stay on to defend the independence of the Federal Reserve or retire quietly into obscurity.
. I mean, can you imagine if any other CEO just rolled over like that? It's like, Trump thinks he's above the law and that the Fed exists to do his bidding. The real reason behind those subpoenas was never about checking details on a renovation project – it was all about silencing Powell for refusing to lower interest rates.
. If Trump can just bully his way into getting what he wants, and nobody's holding him accountable, that's a huge problem. The real victims here aren't just Powell or even the Fed – it's the whole fabric of democracy itself.
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. It's all about accountability and transparency, you know? So, I'm keeping a close eye on this situation and hoping that Powell stays strong in the face of adversity 
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... i mean, trump's just trying to do what he thinks is best for america, right? and the guy at the fed, jerome powell, is all stubborn and stuff 
... but can we talk about how weird it is that there's this whole thing with the rennovation project and people are making a big deal out of it? 
can someone explain that to me in simple terms, pls? 
. I mean, have you ever been to the middle of nowhere and seen a giant statue of a animal that's just...there? Like, what even is its purpose? Anyway, speaking of roads, I was reading this article about how the Federal Reserve is being attacked by Trump and it got me thinking about how some politicians are just really bad at driving 
. Just kidding! (kind of). Seriously though, can we talk about something else for a sec? Did you know that there's this one tiny town in Wyoming that has a giant ball of twine that's like 40 feet around? Like, what even is the deal with that?!
, if the president can just intimidate the chair into doing what he wants, that's a huge problem. central bank independence is such an important thing for us to have, it keeps the economy stable and prevents politicians from making rash decisions based on their own interests.
it's like when your boss tells you to do something that goes against your values, you gotta speak up and say no 
this isn't about personal attacks on powell, it's about the principle of central bank independence being respected 
It's crazy how much power the Justice Department is trying to flex here... it's like they're playing a game of "Fed vs. President" and I am HERE. FOR. IT 
The thing is, if we start to think that the Fed can be controlled by Trump's whims, it's gonna be trouble for everyone! 
So Powell's bravery might just save us from a recession 
Fingers crossed he stays the course and keeps those interest rates steady 
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. And I think we need more people like Powell who are willing to speak truth to power and defend our institutions. I mean, it's not just about the Fed; it's about the principle of democracy itself 
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I mean, come on, Trump thinks he can just make up some crazy story about the Fed and then try to attack Powell for it? It's like something out of a movie 
. But at the end of the day, it's not funny; it's serious stuff that affects real people's lives.
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. It's like we're all too scared to speak truth to power. I know some people will say Powell's just a politician trying to protect himself, but let's be real - if he wasn't standing up for what's right, he'd be a lot more popular with Trump fans 
. Let's hope Powell sticks around to make sure we don't go down that road 
dystopian novel! Trump's all about control and silencing anyone who gets in his way, it's like he thinks he can just 
manipulate the system to suit his ego. Newsflash, dude: you can't just 
stand against Trump - shows he's got some serious 
guts for a Fed chair. And what's up with the Justice Dept trying to weaponize its authority? Like, that's just a big 
political plaything, it'll be 
hero moment, but I'm more worried about the long-term damage to American democracy. Can we just get back to 
good old-fashioned debate and dissent instead of this all-out 
battle? 
. I mean, think about it - for years now, CEOs have been walking around with their heads down, too afraid to speak out against Trump's antics. But Powell's bravery is showing us that even the most powerful people can stand up for what's right 
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