president Donald Trump struck on Tuesday Federal Reserve Chair Jerome Powell labeled as either “incompetent” or “crooked,” even when confronted by his Justice Department growing resistance above his criminal investigations the head of the central bank.
Trump took his latest swipe at Powell after being asked if this was an unprecedented action undermines trust in the Fed, which has long been independent of the executive branch.
“It’s billions of dollars over budget,” Trump said, apparently referring to costs associated with one billion-dollar renovation the Fed’s Washington headquarters, which is at the center of the DOJ investigation.
“So he’s either incompetent or he’s corrupt,” Trump told reporters outside the White House. “I don’t know what he is. But he’s doing a – certainly not a very good job.”
Trump further insulted Powell after he traveled to Michigan to tour a Ford automobile plant and give a speech at the Detroit Economic Club.
“That idiot will soon be gone,” Trump said of Powell during the speech.
Trump’s comments came as bipartisan criticism of the investigation and support for Fed independence continued to grow.
U.S. President Donald Trump looks at Federal Reserve Chairman Jerome Powell holding a document during a tour of the Federal Reserve Board building in Washington, DC, USA on July 24, 2025.
Kent Nishimura | Reuters
“Everyone we know believes in the independence of the Fed.” JPMorgan Chase CEO Jamie Dimon told reporters earlier Tuesday after his bank released its Fourth quarter earnings results.
“Anything that fails is probably not a good idea,” Dimon said. “And in my opinion it will have the opposite consequences, it will raise inflation expectations and probably raise interest rates over time.”
Dimon’s comments reflected similar concerns from a number of Republican lawmakers, including some who are reliable supporters of Trump.
“If you wanted to design a system that guaranteed that interest rates would go up and not go down, the best way to do that would be a competition between the Federal Reserve and the executive branch of the United States,” Senate Banking Committee member John Kennedy, R-La., said Monday.
“We need this like a hole in the head,” he added.
Treasury Secretary Scott Bessent expressed concerns to Trump that the U.S. Justice Department’s investigation could complicate existing plans to confirm the next Fed chair when Powell’s term expires in May, CNBC has learned.
But U.S. Attorney Jeanine Pirro signaled overnight that her Washington, D.C. office has no plans to stop its legal efforts against the Fed and Powell.
“The U.S. Attorney’s Office contacted the Federal Reserve multiple times to discuss cost overruns and the Chairman’s testimony before Congress, but was ignored, necessitating the use of litigation – which is not a threat,” Pirro wrote in a post on X.
“The word ‘indictment’ comes from Mr. Powell’s mouth, not from anyone else’s. None of this would have happened if they had only responded to our request,” Pirro wrote.
“This office makes decisions based on the facts, nothing more, nothing less. We agree with the Chairman of the Federal Reserve that no one is above the law, and therefore we expect his full cooperation,” she added.
Powell said Sunday evening that the Justice Department had served grand jury subpoenas and threatened “criminal indictment” based on his previous Senate testimony about ongoing renovations to the central bank’s office buildings.
Powell directly linked the investigation to Trump’s frequent complaints about the Fed cutting interest rates too slowly.
“The threat of criminal charges is a result of the Federal Reserve setting interest rates based on our best judgment of what serves the public, rather than the president’s preferences,” he said in a video statement.
“No one, certainly not the chairman of the Federal Reserve, is above the law,” Powell said. “But this unprecedented action should be seen in the broader context of the government’s threats and continued pressure.”
Trump said the subpoenas had nothing to do with his views on interest rates.
“”NO. “I wouldn’t even think about doing it that way,” Trump told NBC News on Sunday night. “What should put pressure on him is the fact that interest rates are far too high.” That’s the only pressure he has.
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