President Donald Trump on Tuesday slammed Federal Reserve Chair Jerome Powell as either “incompetent” or “crooked,” even as his Department of Justice faces growing opposition over its criminal investigation of the central bank leader.
Trump threw his latest punch at Powell after being asked whether the unprecedented action undermines confidence in the Fed, which has long enjoyed independence from the executive branch.
“He’s billions of dollars over budget,” Trump said, apparently referencing costs related to a multibillion-dollar renovation of the Fed’s Washington headquarters, which is at the center of DOJ’s probe.
“So, he either is incompetent or he’s crooked,” Trump said. “I don’t know what he is. But he does a – certainly he doesn’t do a very good job.”
Trump’s comments to reporters outside the White House came as bipartisan criticism of the investigation, and support for the Fed’s independence, continue to grow.
U.S. President Donald Trump looks at Federal Reserve Chair Jerome Powell holding a document during a tour of the Federal Reserve Board building, which is currently undergoing renovations, in Washington, D.C., U.S., July 24, 2025.
Kent Nishimura | Reuters
“Everyone we know believes in Fed independence,” JPMorgan Chase CEO Jamie Dimon told reporters earlier Tuesday after his bank released its fourth-quarter earnings results.
“Anything that chips away at that is probably not a great idea,” Dimon said. “And in my view, it will have the reverse consequences, it will raise inflation expectations and probably increase rates over time.”
Dimon’s remarks echoed similar concerns from a slew of Republican lawmakers, including some who are reliable supporters of Trump.
“If you wanted to design a system to guarantee that interest rates would go up and not down, the best way to do that would be to have the Federal Reserve and the executive branch of the United States get in a pissing contest,” Senate Banking Committee member John Kennedy, R-La., said Monday.
“We need this like we need a hole in the head,” he added.
Treasury Secretary Scott Bessent, expressed concerns to Trump that the DOJ probe could complicate existing plans to confirm the next Fed chair after Powell’s term expires in May, CNBC has learned.
But U.S. Attorney Jeanine Pirro signaled overnight that her office in Washington, D.C., has no plans to drop its legal effort against the Fed and Powell.
“The United States Attorney’s Office contacted the Federal Reserve on multiple occasions to discuss cost overruns and the chairman’s congressional testimony, but were ignored, necessitating the use of legal process—which is not a threat,” Pirro wrote in a post on X.
“The word ‘indictment’ has come out of Mr. Powell’s mouth, no one else’s. None of this would have happened if they had just responded to our outreach,” Pirro wrote.
“This office makes decisions based on the merits, nothing more and nothing less. We agree with the chairman of the Federal Reserve that no one is above the law, and that is why we expect his full cooperation,” she added.
Powell, on Sunday night, said the DOJ served grand jury subpoenas and threatened a “criminal indictment” based on his prior Senate testimony about the ongoing renovations of the central bank office buildings.
Powell directly connected the probe to Trump’s frequent complaints about the Fed lowering interest rates too slowly.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” he said in a video statement.
“No one, certainly not the chair of the Federal Reserve, is above the law,” Powell said. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
Trump has said the subpoenas have nothing to do with his views on interest rates.
“”No. I wouldn’t even think of doing it that way,” Trump told NBC News on Sunday night. “What should pressure him is the fact that rates are far too high. That’s the only pressure he’s got.”
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