Senate Minority Leader Chuck Schumer (D-N.Y.) accused President Donald Trump of using the Justice Department to intimidate Federal Reserve Chair Jerome Powell, warning the move could raise borrowing costs for millions of Americans.
Trump DOJ Probe Sparks Fed Rate Concerns
On Monday, in a post on X, Schumer said a reported criminal probe into Powell was politically motivated and aimed at pressuring the independent central bank.
“Anyone with two eyes and half a brain knows exactly what the DOJ’s criminal probe into Jerome Powell represents: a brazen attempt by Donald Trump to weaponize the DOJ and bully America’s central bank into submission,” Schumer wrote.
In the video, Schumer linked the alleged pressure campaign to higher interest rates for consumers.
“What is this bogus, unfounded, nasty investigation of Jerome Powell, chairman of the Fed, mean to you? It means it’s going to be harder to buy a home. It means mortgage rates go up, credit card rates go up, car loan rates go up.”
Schumer argued that markets react negatively when political leaders interfere with the Fed’s independence.
“The markets are totally confounded by the asininity of Donald Trump,” he said, adding that uncertainty pushes interest rates higher.
Benzinga has reached out to the White House for a comment. The story will be updated when we receive a response.
He also accused Trump of prioritizing political grudges over economic stability, saying the president “cares about going after his political enemies and doesn’t give a shit about you.”
Schumer further blamed Trump’s economic agenda for current conditions, saying, “If Trump wants someone to blame, he should simply look in the mirror.”
Democrats Condemn Trump’s DOJ Probe Of Fed Chair Powell
On Monday, multiple Democratic leaders criticized Trump for targeting Powell.
Sen. Elizabeth Warren (D-Mass.) accused Trump of trying to use the DOJ to remove Powell and replace him with a loyalist, emphasizing that the Federal Reserve is meant to operate independently for the public, not to serve Trump or his wealthy donors.
Sen. Chris Murphy (D-Conn.) warned that Trump’s threat to imprison Powell over interest rates reflects ongoing corruption and autocratic behavior, urging Americans to stay outraged.
Sen. Bernie Sanders (I-Vt.) called for an end to Trump’s targeting of Powell and other political opponents, denouncing it as persecution.
Rep. Ro Khanna stated that Trump’s tariff policies are hindering Powell from lowering interest rates, thereby putting the nation’s economic stability and prosperity at risk.
House Minority Leader Hakeem Jeffries (D-N.Y.) described the DOJ under Trump as corrupt and politically motivated, arguing there is no justification for a criminal probe of Powell and vowing that Democrats will not be intimidated.
Trump-Powell Feud Raises Fed Independence Alarm
Earlier, President Trump escalated his feud with Powell, threatening a lawsuit over the Fed’s multi-billion-dollar headquarters renovation.
Powell responded that the DOJ had threatened the Fed with a “criminal indictment,” calling the renovation and subpoenas “pretexts” and saying the real conflict was over U.S. monetary policy.
He stressed the Fed sets rates based on economic conditions, not political pressure, and pledged to continue serving with integrity.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Domenico Fornas / Shutterstock.com
Recent Comments