{"id":418992,"date":"2026-04-30T21:08:09","date_gmt":"2026-04-30T21:08:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/418992\/"},"modified":"2026-04-30T21:08:09","modified_gmt":"2026-04-30T21:08:09","slug":"how-trumps-pressure-tactics-against-jerome-powell-backfired","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/418992\/","title":{"rendered":"How Trump\u2019s pressure tactics against Jerome Powell backfired"},"content":{"rendered":"

Federal Reserve Chair Jerome Powell\u2019s decision to stay on the central bank\u2019s board<\/a> as a governor once his term as chair expires on May 15 is a great example of how President Donald Trump\u2019s authoritarian pressure tactics<\/a> can backfire.<\/p>\n

Although Powell\u2019s term as chair is ending, his tenure as one of the seven governors on the board doesn\u2019t expire until 2028. Typically, Fed chairs step down from the board altogether after their term as chair ends \u2014 the The Wall Street Journal notes<\/a> that \u201cevery chair for the past 75 years has left the central bank at the end of his or her leadership term.\u201d Powell said that he had expected to follow that tradition, but that he\u2019s breaking the norm because of the Justice Department\u2019s bogus criminal investigation<\/a> of him, meant to press him to lower interest rates.<\/p>\n

Powell is showing that the Federal Reserve can withstand immense political pressure. <\/p>\n

\u201cI\u2019m literally staying because of the actions that have been taken,\u201d Powell said<\/a> at a news conference Wednesday when he was asked whether his decision would be seen as a political act. \u201cI have long planned to be retiring.\u201d<\/p>\n

Powell said his hand was forced<\/a> because the DOJ\u2019s probe into cost overruns tied to the Fed\u2019s renovation of its headquarters was such a transparent bid to strong-arm him into compliance with Trump\u2019s demands.\u00a0<\/p>\n

In March, U.S. District Judge James Boasberg blocked subpoenas issued in that criminal investigation because, he said, there was \u201cessentially zero evidence\u201d to suspect Powell of a crime. \u201cThere is abundant evidence that the subpoenas\u2019 dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will,\u201d Boasberg wrote<\/a> in that ruling.<\/p>\n

Last week the Justice Department indicated that it is dropping its investigation into Powell but said that it could restart the probe<\/a>, and White House press secretary Karoline Leavitt said the investigation<\/a> was \u201cnot necessarily dropped\u201d but instead was \u201cjust being moved over to the inspector general.\u201d Powell said he\u2019s waiting<\/a> until the investigation is \u201cwell and truly over, with finality and transparency.\u201d<\/p>\n

\t\t\t\t\t\t\t\t\tPlay<\/p>\n

\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t<\/p>\n

In his news conference, Powell said<\/a>, \u201cI worry that these attacks \u200bare battering the institution and putting at \u200brisk the thing that really matters to the public, which is the ability to conduct \u200bmonetary policy without taking into consideration \u200bpolitical factors.\u201d<\/p>\n

\t\t\t\t\t\t\t
\n\t\t\t\t\"Zeeshan\t\t\t\t<\/a><\/p>\n

\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\tZeeshan Aleem<\/a>\t\t<\/p>\n

\n\t\t\t\t\t\tZeeshan Aleem is a writer and editor for MS NOW. He primarily writes about politics and foreign policy.\t\t<\/p>\n

\"MS<\/p>\n

\u00a9\u00a02026 Versant Media, LLC<\/p>\n

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