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jerome powell
Powell Gives Extraordinary Show of Support to Fed Governor Targeted by Trump
The president is trying to fire Fed Gov. Lisa Cook for alleged mortgage fraud. Critics say he's targeting another one of his political foes.
Jan 19, 2026
Federal Reserve Chair Jerome Powell reportedly plans to attend Wednesday's US Supreme Court oral arguments in the case involving President Donald Trump's attempt to fire Fed Gov. Lisa Cook.
A "person familiar with the matter" told the Associated Press on condition of anonymity that Powell would attend the high court session in the face of Trump's unprecedented effort to oust one of the seven members of the Fed's governing board.
Last August, Trump announced his termination of Cook—an appointee of former President Joe Biden—for alleged fraud, accusing her of signing two primary residence mortgages within weeks of each other. An investigation published last month by ProPublica revealed that Trump did the same thing that he's accusing Cook of doing.
Cook denies any wrongdoing, has not been charged with any crime, and has filed a lawsuit challenging Trump’s attempt to fire her. In October, the Supreme Court declined to immediately remove Cook and agreed to hear oral arguments in the case.
In what many critics allege is an attempt by Trump to strong-arm the Fed into further interest rate cuts, the US Department of Justice (DOJ) earlier this month served the central bank with grand jury subpoenas related to Powell's congressional testimony on renovations to Fed headquarters in Washington, DC.
Powell—who was nominated by Trump in 2017 and whose four-year term as Fed chair ends May 15—responded by alleging that “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."
"This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation," he added.
Trump is trying to install his puppets at the Fed.First by trying to fire Lisa Cook and rushing in his top econ adviser.Now by abusing the law to try to push Jerome Powell out for good.Next he'll nominate a new Chair—and Trump says “anybody that disagrees" with him is out.
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— Elizabeth Warren (@warren.senate.gov) January 15, 2026 at 7:54 AM
In addition to Cook, Trump has targeted a number of Democrats with what critics say are dubious mortgage fraud claims.
Last November, a federal judge dismissed a DOJ criminal case against New York Attorney General Letitia James, who was charged with bank fraud and false statements regarding a property in Virginia. Critics called the charges against James—who successfully prosecuted Trump for financial crimes—baseless and politically motivated. A federal grand jury subsequently rejected another administration attempt to indict James.
The president has accused other political foes, including US Sen. Adam Schiff and Rep. Eric Swalwell—both California Democrats who played key roles in both of the president’s House impeachments—of similar fraud. Swalwell is currently under formal criminal investigation. Both lawmakers deny the allegations.
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How Will the Billionaires React If Trump Cancels the 2026 Elections?
We now know that most of the big money boys couldn’t care less about democracy, but it's worth asking how the markets will react if the current US president tries to end American democracy.
Jan 14, 2026
The lack of market reaction to the news that Trump ordered his Justice Department to investigate criminal charges against Fed Chair Jerome Powell surprises many people. After all, everyone knows that the claims about cost overruns being the basis for the investigation is nonsense. Trump wants to threaten Powell with criminal charges because he ignored Trump’s demand that he lower interest rates.
This ordinarily would be seen as a very big deal. Ever since Nixon, presidents have been reluctant to be seen as pressuring the Fed. In fact, their concern on this issue often seemed absurd to my view. President Biden didn’t want his Council of Economic Advisors to even comment on interest rate policy, as though giving a view based on the economic data would be undue pressure.
But there is a big difference between presenting an economic argument and threatening to imprison a Fed chair who disagrees. And we now see which side Trump comes down on.
But apparently, the markets are just fine with this new threat. The major stock indexes all rose on Monday, although bond prices fell slightly, pushing long-term rates higher. The dollar also fell modestly.
The non-reaction of the stock markets might seem surprising. After all, the independent Fed is considered a sacred feature of US prosperity. There is no shortage of economists who will insist that a Fed that is subordinate to the whims of a president is quick route to double-digit or even triple digit inflation. (I’m more agnostic on this one, but the markets generally don’t listen to me.)
Anyhow, Trump is now not just looking to fire an insubordinate Fed chair, he’s looking to throw him in prison. And the markets just yawned.
This reaction should cause us to start asking how the markets might react if Trump just cancels or outright steals the 2026 elections in order to keep his lackeys in control of Congress. Under any other modern president, the fear of a cancelled or stolen election would be silly. While they might have used dubious tactics leading up to an election, we could be comfortable that the votes would be counted, and the outcome would be binding. (Florida in 2000 is a major exception.) No one ever suggested that an election would be cancelled.
But Trump has made it clear that he considers both cancellation and ordering that some votes not be counted as serious options in his recent New York Times interview. No one can be safe in assuming that we will have a normal democratic election this year.
Given this reality, we might want to speculate on how the markets would react in the event that Trump does decide to end American democracy. We now know that most of the big money boys couldn’t care less about democracy. Jeff Bezos, Mark Zuckerberg, and Tim Cook have been happy to cozy up to Trump in Mar-a-Lago, even as he violates one democratic norm after another. Elon Musk has made it clear that he has contempt for democracy, insofar as it means allowing non-white people to vote.
This gang would obviously have no moral issues with a cancelled or stolen election. But what about the economics?
Trump has already made it clear that he will favor businesses whose leaders praise him and punish those who criticize him. His most recent effort in this direction was saying that he intended to ban ExxonMobil from access to Venezuelan oil because its CEO said what every oil analyst has said since Trump became president of that country: it will be difficult for companies to profitably invest there.
The economies of countries where the leader can reward or punish companies on a whim tend to not do very well. The courts have provided a limited check on Trump’s whims as has even this pathetic Congress. However, if Trump is deciding who serves in Congress, the checks will be gone. We will have full-rule by our demented 79-year-old president.
Perhaps markets will be fine with that. With enough rear-end licking some companies may still do fine, but it would seem on the straight economics most people with money would probably prefer to invest in a serious country. Let’s hope we don’t have to find out.
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Sanders Warns Powell Probe Part of Trump Plan to 'Intimidate and Destroy' All Critics
"We must not allow our great country, the United States of America, to become an authoritarian society."
Jan 12, 2026
Sen. Bernie Sanders on Monday warned that the Trump administration's targeting of Federal Reserve Chairman Jerome Powell for criminal investigation was part of a broader pattern of intimidation aimed at quelling dissent.
In a prepared statement, Sanders (I-Vt.) acknowledged that he had his own disagreements with Powell, a conservative Republican who was first appointed by President Donald Trump to be chairman of the Federal Reserve in 2017.
However, Sanders said political disagreements had nothing to do with the Department of Justice launching a criminal probe of Powell.
"In a democracy, debate and disagreement are normal," Sanders said. "But Donald Trump does not 'disagree' with his opponents. In his pursuit of absolute power, he attempts to destroy anyone who stands in his way. He's actively prosecuting Powell not because the Fed chair broke the law, but because he won't bend the knee to Donald Trump."
Sanders noted that Powell was only the latest target of the Trump administration's vindictive retribution.
"When Sen. Mark Kelly (R-Ariz.) spoke out against Donald Trump's authoritarian rhetoric and threats toward political opponents, Trump didn't agree," Sanders explained. "He had his Defense Department investigate Kelly for misconduct and threatened to have him executed."
Sanders also pointed to the prosecutions of New York Attorney General Letitia James and former FBI Director James Comey, as well as his threats against assorted other critics, as evidence that Trump seeks to "intimidate and destroy... as part of his march to authoritarianism."
"We must not allow our great country, the United States of America, to become an authoritarian society," Sanders concluded. "Trump's persecution of his political opponents must end."
The co-chairs of the Not Above the Law coalition–Lisa Gilbert, co-president of Public Citizen; Praveen Fernandes, vice president of the Constitutional Accountability Center; Kelsey Herbert, campaign director at MoveOn; and Brett Edkins, managing director for policy and political affairs at Stand Up America—also denounced the investigation into Powell as politically motivated on Monday, while arguing it was part of an effort to stifle dissent in the US.
"Whether targeting federal judges, members of Congress, civil society organizations, or now the chair of the Federal Reserve, Trump weaponizes the full force of government against anyone who won't submit to his will," they said. "Undermining the Federal Reserve threatens Americans’ jobs and savings, and our nation’s economy."
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