Senate Minority Leader Chuck Schumer (D-N.Y.) publicly criticized former President Donald Trump for allegedly using the Department of Justice (DOJ) as a tool to exert pressure on Federal Reserve Chair Jerome Powell, suggesting that this strategy jeopardizes the central bank's autonomy and could lead to increased borrowing costs for everyday Americans.
This assertion came in response to reports of a DOJ criminal investigation targeting Powell, which Schumer characterized as politically motivated. In a post on the social media platform X (formerly Twitter), Schumer condemned the inquiry as a transparent effort by Trump to weaponize the DOJ and coerce the Federal Reserve into compliance with political objectives.
Schumer explained the practical consequences of such a probe for the public, emphasizing that interference with the independent Fed produces tangible financial repercussions. He highlighted that consumers would face difficulty in securing mortgages, as well as heightened interest rates for credit cards and auto loans, directly impacting household budgets.
He elaborated on the broader market implications of political meddling, noting that investors are unsettled by what he described as Trump's "asinine" actions which disrupt financial markets. According to Schumer, the resulting uncertainty drives interest rates upward, compounding challenges for the economy.
Despite reaching out to the White House for an official comment, no response had been received at the time of reporting.
Schumer further accused Trump of prioritizing personal vendettas over national economic welfare, bluntly stating that the former president is more focused on targeting political adversaries without regard for the financial well-being of the populace. He concluded by asserting that if Trump seeks accountability for current economic difficulties, he should reflect introspectively, implying that Trump's policies bear responsibility.
Additional Democratic figures echoed Schumer's rebuke. Senator Elizabeth Warren (D-Mass.) argued that Trump's intent appears to be to leverage the DOJ to remove Powell from his position and install a loyalist. She underscored the importance of maintaining the Federal Reserve's independence to serve the broader public interest rather than political or wealthy donor agendas.
Senator Chris Murphy (D-Conn.) expressed alarm over the threat to imprison Powell based on interest rate decisions, framing it as evidence of continued corruption and autocratic tendencies. He urged the American public to remain vigilant and outraged.
Senator Bernie Sanders (I-Vt.) condemned the targeting of Powell and other political opponents, characterizing such actions as persecution that should cease. Meanwhile, Representative Ro Khanna linked Trump's tariff policies to restrictions faced by Powell in reducing interest rates, suggesting that these measures imperil the nation's economic health and vitality.
House Minority Leader Hakeem Jeffries (D-N.Y.) criticized the DOJ under Trump's leadership as politically driven and corrupt. He asserted there is no legitimate basis for initiating a criminal probe of Powell and affirmed that Democrats would resist any efforts to intimidate the Federal Reserve Chair.
The discord between Trump and Powell intensified following reports that Trump threatened legal action over a renovation project for the Federal Reserve's headquarters, valued at billions of dollars. Powell responded by revealing that the DOJ allegedly threatened the Fed with a criminal indictment. He characterized the renovation and related subpoenas as pretexts, suggesting that the real issue is disagreement over United States monetary policy.
Powell emphasized that decisions regarding interest rates are driven by economic indicators and not political considerations. He reaffirmed his commitment to upholding the Fed's integrity despite pressures.
Disclosure: This content was produced with AI assistance and reviewed editorially.