Jerome Powell: steely Fed chair standing firm in face of Trump's threats

• Powell successfully guided the economy through a 'soft landing', bringing inflation down from 9.1% in 2022 to 2.3% in April while keeping unemployment at 4.2%
• Trump has repeatedly called Powell 'a stupid person' and threatened to fire him, escalating a campaign to force interest rate cuts that violates Fed independence
• Powell stated the criminal investigation is 'pretext' after the Fed refused to follow 'the preferences of the president', warning the entire institution's future is at stake

Summary: Jerome Powell Stands Firm Against Trump Administration Pressure

Key Development: Federal Reserve Chair Jerome Powell publicly condemned a criminal investigation launched against him by the Trump administration, calling it a "pretext" following the Fed's refusal to lower interest rates as the White House demanded. In an unprecedented Sunday statement, Powell vowed not to back down, citing his duty to maintain the central bank's political independence.

Background: Powell, a Republican appointed by both Trump (2018) and Biden (reappointed), has led the Fed through COVID-19, post-pandemic inflation that peaked at 9.1% in summer 2022, and recent economic turbulence. He successfully guided inflation down to 2.3% by April (the lowest in three years) while maintaining unemployment at 4.2%—achieving a near "soft landing."

Trump's Campaign: The president has repeatedly attacked Powell via social media and public statements, calling him "a stupid person" and floating termination multiple times. The administration seeks rate cuts to support its economic agenda, which includes massive tariffs, anti-immigration operations, and federal layoffs.

Investigation Details: The reported criminal probe focuses on renovations at Fed headquarters. Powell characterized this as an extraordinary violation of central bank independence, noting the timing following the Fed's resistance to presidential pressure on monetary policy.

Market Implications: The Fed's independence, established by Congress in 1913, is critical for managing the economy and controlling inflation. Economists warn that a politicized central bank can negatively impact inflation and cost of living. Global central banks have offered "full solidarity" with Powell.

Timeline: Powell's term concludes in May. Trump claims he has already selected a successor, marking a potential turning point for the institution's autonomy and credibility in global markets.