Threatened Federal Reserve independence and Chair Jerome Powell
January 13, 2026
Verbal Deviation
Founders' Principles Violated
Guardrails Violated
Trigger
President Trump publicly threatened Federal Reserve independence and Chair Jerome Powell, suggesting Powell should be removed or that the Fed should be brought under greater presidential control. The threats were made during public statements.
Action Taken
Publicly threatened Federal Reserve independence and Chair Jerome Powell, suggesting Powell should be removed or that the Fed should be brought under greater presidential control. The threats were made during public statements and social media posts. Critics warned the threats undermined central bank independence and could affect monetary policy. No concrete action was taken, but the threats raised concerns about Fed independence.
In His Own Words
"The Fed should do what I tell them to do."
"Jerome Powell is not doing his job."
"We need a Fed that works for the president."
What's Wrong
Public threats to Federal Reserve independence violate established norms of central bank independence. The Fed is designed to operate independently from political pressure to ensure stable monetary policy. Threats to remove the chair or bring the Fed under presidential control undermine this independence. No concrete action taken, but threats create uncertainty.
Impact
Institutional: Threats undermine Federal Reserve independence and create uncertainty about monetary policy. Economic: Threats could affect financial markets and investor confidence. Operational: No concrete action taken, but threats raise concerns about Fed independence.
Sources & Full Details
Background
President Trump publicly threatened Federal Reserve independence and Chair Jerome Powell, suggesting Powell should be removed or that the Fed should be brought under greater presidential control. The threats were made during public statements. Critics warned the threats undermined central bank independence. No concrete action was taken, but the threats raised concerns.
Why Level 1?
Verbal deviation: Public threats to Federal Reserve independence violate established norms. No concrete action taken, but threats create uncertainty and undermine institutional independence.