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.”
Sen. Bernie Sanders (I-Vt.) speaks at his Fighting Oligarchy Tour in Brooklyn, New York, on September 6, 2025.
(Photo by Selcuk Acar/Anadolu via Getty Images)
Brad Reed
Jan 12, 2026
COMMON DREAMS
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.”
Jerome Powell: The careful Fed chair standing firm against Trump“We must not allow our great country, the United States of America, to become an authoritarian society.”
Sen. Bernie Sanders (I-Vt.) speaks at his Fighting Oligarchy Tour in Brooklyn, New York, on September 6, 2025.
(Photo by Selcuk Acar/Anadolu via Getty Images)
Brad Reed
Jan 12, 2026
COMMON DREAMS
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.”
Backlash Builds Against Trump DOJ’s ‘Unprecedented’ Investigation of US Federal Reserve Chairman
“If the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer.”
Sen. Lisa Murkowski (R-Alaska) arrives in the US Capitol for a vote on Wednesday, January 7, 2026.
(Photo by Bill Clark/CQ-Roll Call, Inc via Getty Images)
Brad Reed
Jan 12, 2026
COMMON DREAMS
The US Department of Justice’s decision to open a criminal investigation into Federal Reserve Chairman Jerome Powell has ignited a major backlash that even has some Republican senators drawing a line in the sand.
Shortly after Powell released a video on Sunday accusing the Department of Justice (DOJ) of waging an “intimidation” campaign against him on behalf of President Donald Trump, Sen. Thom Tillis (R-NC) blasted the administration, accusing them of trying to compromise the independence of America’s central bank.
“If there were any remaining doubt whether advisers within the Trump administration are actively pushing to end the independence of the Federal Reserve, there should now be none,” said Tillis, who further vowed to “oppose the confirmation of any nominee for the Fed—including the upcoming Fed chair vacancy—until this legal matter is fully resolved.”
On Monday, Sen. Lisa Murkowski (R-Alaska) backed up Tillis’ pledge to oppose any nominees for the Federal Reserve until the criminal probe of Powell, whose term as Fed chair is due to end in May, has been resolved.
Murkowski also revealed that she spoke with Powell and determined that “it’s clear the administration’s investigation is nothing more than an attempt at coercion” aimed at affecting his decisions on US monetary policy.
“The stakes are too high to look the other way,” Murkowski emphasized. “If the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer.”
Trump can only afford to lose the support of four Republican senators in a vote for a new Fed chair, which means Tillis and Murkowski’s vows not to support any nominee until the case against Powell is resolved carry significant weight.
A bipartisan group of economists who have served under US presidents dating back to Ronald Reagan—including former Federal Reserve Chairs Alan Greenspan, Ben Bernanke, and Janet Yellin—released a joint statement on Monday denouncing what they described as an effort to strong-arm the Federal Reserve into doing the president’s bidding.
“The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine... independence,” they wrote. “This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly. It has no place in the United States, whose greatest strength is the rule of law, which is at the foundation of our economic success.”
Trump, who nominated Powell to be Federal Reserve chairman in 2017, has been openly pressuring Powell for months to more aggressively cut interest rates in the face of a faltering jobs market.
Powell, however, has continued to take a more cautious approach, and has cited the price instability caused by Trump’s tariffs as a reason to hold off on more aggressive rate cuts.
“If the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer.”
Sen. Lisa Murkowski (R-Alaska) arrives in the US Capitol for a vote on Wednesday, January 7, 2026.
(Photo by Bill Clark/CQ-Roll Call, Inc via Getty Images)
Brad Reed
Jan 12, 2026
COMMON DREAMS
The US Department of Justice’s decision to open a criminal investigation into Federal Reserve Chairman Jerome Powell has ignited a major backlash that even has some Republican senators drawing a line in the sand.
Shortly after Powell released a video on Sunday accusing the Department of Justice (DOJ) of waging an “intimidation” campaign against him on behalf of President Donald Trump, Sen. Thom Tillis (R-NC) blasted the administration, accusing them of trying to compromise the independence of America’s central bank.
“If there were any remaining doubt whether advisers within the Trump administration are actively pushing to end the independence of the Federal Reserve, there should now be none,” said Tillis, who further vowed to “oppose the confirmation of any nominee for the Fed—including the upcoming Fed chair vacancy—until this legal matter is fully resolved.”
On Monday, Sen. Lisa Murkowski (R-Alaska) backed up Tillis’ pledge to oppose any nominees for the Federal Reserve until the criminal probe of Powell, whose term as Fed chair is due to end in May, has been resolved.
Murkowski also revealed that she spoke with Powell and determined that “it’s clear the administration’s investigation is nothing more than an attempt at coercion” aimed at affecting his decisions on US monetary policy.
“The stakes are too high to look the other way,” Murkowski emphasized. “If the Federal Reserve loses its independence, the stability of our markets and the broader economy will suffer.”
Trump can only afford to lose the support of four Republican senators in a vote for a new Fed chair, which means Tillis and Murkowski’s vows not to support any nominee until the case against Powell is resolved carry significant weight.
A bipartisan group of economists who have served under US presidents dating back to Ronald Reagan—including former Federal Reserve Chairs Alan Greenspan, Ben Bernanke, and Janet Yellin—released a joint statement on Monday denouncing what they described as an effort to strong-arm the Federal Reserve into doing the president’s bidding.
“The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine... independence,” they wrote. “This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly. It has no place in the United States, whose greatest strength is the rule of law, which is at the foundation of our economic success.”
Trump, who nominated Powell to be Federal Reserve chairman in 2017, has been openly pressuring Powell for months to more aggressively cut interest rates in the face of a faltering jobs market.
Powell, however, has continued to take a more cautious approach, and has cited the price instability caused by Trump’s tariffs as a reason to hold off on more aggressive rate cuts.
By AFP
January 12, 2026
US Federal Reserve Chair Jerome Powell has avoided confrontation despite President Donald Trump's attacks, but he made a rare forceful response in the face of a criminal investigation - Copyright AFP/File SAUL LOEB
Beiyi SEOW
US Federal Reserve Chair Jerome Powell has generally avoided escalation in the face of Donald Trump’s relentless criticism — but in recent months, the central banker has become a rare figure to publicly resist his attacks.
The change of tack was especially pronounced on Sunday night, when Powell accused the Trump administration of threatening him with prosecution to push the Fed into cutting interest rates. He warned that a new Department of Justice investigation targeting him was a threat to the central bank’s independence.
“What made the statement so powerful is how rare it is,” Jason Furman, a top economic adviser to former US president Barack Obama, told AFP.
“A year ago, Powell got a question about Donald Trump and the Fed, and gave a one-word answer,” added Furman, now a professor at Harvard University. “He has not wanted to be baited into a fight.”
The fact that Powell felt the need to respond forcefully now “conveys just how serious the issue is,” Furman said.
Powell, a 72-year-old former investment banker, took the helm at the Fed in 2018 after he was tapped by Trump to replace Janet Yellen. It was Trump’s first presidency.
Powell then withstood months of withering attacks from Trump for raising interest rates.
When Covid-19 took hold in 2020, the Fed rapidly slashed its benchmark rate to zero and rolled out new support measures, moves that helped to prevent a more severe downturn.
His tenure won him praise and criticism from all sides as he maintained the central bank’s independence.
Over that tumultuous period, Powell, who is also called “Jay,” managed to forge consensus among the diverse members of the Fed’s rate-setting committee.
In 2021, the wealthy Republican with no formal economics training was nominated by Democratic President Joe Biden to lead the Fed for a second term.
He proceeded to oversee a series of sharp rate hikes in 2022 to curb surging inflation after the pandemic, before beginning to cautiously lower rates again in 2024 and 2025 as he eyed the price effects from Trump’s sweeping new tariffs.
– ‘The guy who stood up’ –
Less than a year before his time as Fed chair expires in May 2026, however, Powell has again come under fire as Trump lashes out at him for not lowering interest rates more aggressively.
Trump, now in his second presidency, has called Powell a “numbskull” and “moron,” and in July went so far as to suggest he could be dismissed for “fraud” over the handling of a $2.5 billion renovation project at the Fed’s headquarters.
Since Trump returned to the White House, Powell has proven willing to compromise in certain areas, such as by pulling back on the Fed’s work on climate change.
But “Trump pushed him too far this time, and he came out with all guns blazing,” Brookings senior fellow David Wessel said of the Fed chief’s sharp rebuke of the Justice Department probe.
Wessel expects the forceful response will cement Powell’s legacy as “a Fed chair with a spine.”
“He will be seen as the guy who stood up for the independence of the Fed, and the rule of law,” Wessel told AFP.
Already, Powell made headlines when he appeared with Trump in July as the president toured the under-renovation Fed buildings while criticizing cost overruns.
In a brief exchange in front of reporters, Powell corrected Trump in real-time as the president claimed the price tag for the revamp had ballooned to $3.1 billion.
The usually stoic Fed chair was seen shaking his head on camera while Trump spoke, and responding: “I haven’t heard that from anybody.”
Prior to his appointment to the central bank in 2012 by then-president Obama, Powell was a scholar at the Bipartisan Policy Center think tank.
The native of Washington served in the Treasury Department, in charge of financial institutions, for a brief period under Republican President George H.W. Bush.
Powell says Federal Reserve subpoenaed by US Justice Department
By AFP
January 11, 2026
The US president has criticized Fed Chair Jerome Powell for cost overruns for renovation of the Fed's Washington headquarters - Copyright AFP ANDREW CABALLERO-REYNOLDS
Federal Reserve Chairman Jerome Powell said Sunday that the central bank had been subpoenaed by the US Justice Department, blasting the move as part of President Donald Trump’s extraordinary pressure campaign on US monetary policy decisions.
Powell added in a statement that the bank received grand jury subpoenas “threatening a criminal indictment” on Friday related to his Senate testimony in June, which had been about a major renovation project of Federal Reserve office buildings.
He dismissed the possible threat of indictment over his testimony or the renovation project as “pretexts.”
“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,” Powell said.
“This unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” Powell said.
The Fed has a dual mandate to keep prices stable and unemployment low, and its main tool in doing so is by setting a key interest rate that influences the cost of borrowing across the economy.
Trump has consistently pressured Powell and the central bank to move faster in lowering interest rates, in a breach of the long-standing independence of the institution.
Trump on Sunday denied any knowledge of the Justice Department’s investigation into the Federal Reserve.
“I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” NBC quoted Trump as saying.
– ‘Corrupt takeover’ –
Senators from both sides of the aisle blasted the investigation.
“It is now the independence and credibility of the Department of Justice that are in question,” Republican Thom Tillis said.
“I will oppose the confirmation of any nominee for the Fed — including the upcoming Fed Chair vacancy — until this legal matter is fully resolved,” he added.
Democrat Elizabeth Warren accused Trump of trying “to complete his corrupt takeover” of the central bank by pushing Powell out and installing a “sock puppet” instead.
Powell’s term as chairman of the Federal Reserve ends in May, and Trump told Politico in an interview last month that he would judge Powell’s successor on whether they immediately cut rates.
The US president has openly spoken about ousting Powell but stopped short of doing so, and focused instead on cost overruns for renovation of the Fed’s Washington headquarters.
In July, the cost of the Fed’s facelift of its 88-year-old Washington headquarters and a neighboring building were up by $600 million from an initial $1.9 billion estimate.
That month, Trump made an unusual visit to the construction site during which the two men, clad in hard hats, bickered over the price tag for the makeover.
A significant driver of the cost is security, including blast-resistant windows and measures to prevent the building from collapsing in the event of an explosion.
The Federal Reserve, the world’s most important central bank, makes independent monetary policy decisions and its board members typically serve under both Republican and Democratic presidents
By AFP
January 11, 2026
The US president has criticized Fed Chair Jerome Powell for cost overruns for renovation of the Fed's Washington headquarters - Copyright AFP ANDREW CABALLERO-REYNOLDS
Federal Reserve Chairman Jerome Powell said Sunday that the central bank had been subpoenaed by the US Justice Department, blasting the move as part of President Donald Trump’s extraordinary pressure campaign on US monetary policy decisions.
Powell added in a statement that the bank received grand jury subpoenas “threatening a criminal indictment” on Friday related to his Senate testimony in June, which had been about a major renovation project of Federal Reserve office buildings.
He dismissed the possible threat of indictment over his testimony or the renovation project as “pretexts.”
“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,” Powell said.
“This unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” Powell said.
The Fed has a dual mandate to keep prices stable and unemployment low, and its main tool in doing so is by setting a key interest rate that influences the cost of borrowing across the economy.
Trump has consistently pressured Powell and the central bank to move faster in lowering interest rates, in a breach of the long-standing independence of the institution.
Trump on Sunday denied any knowledge of the Justice Department’s investigation into the Federal Reserve.
“I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” NBC quoted Trump as saying.
– ‘Corrupt takeover’ –
Senators from both sides of the aisle blasted the investigation.
“It is now the independence and credibility of the Department of Justice that are in question,” Republican Thom Tillis said.
“I will oppose the confirmation of any nominee for the Fed — including the upcoming Fed Chair vacancy — until this legal matter is fully resolved,” he added.
Democrat Elizabeth Warren accused Trump of trying “to complete his corrupt takeover” of the central bank by pushing Powell out and installing a “sock puppet” instead.
Powell’s term as chairman of the Federal Reserve ends in May, and Trump told Politico in an interview last month that he would judge Powell’s successor on whether they immediately cut rates.
The US president has openly spoken about ousting Powell but stopped short of doing so, and focused instead on cost overruns for renovation of the Fed’s Washington headquarters.
In July, the cost of the Fed’s facelift of its 88-year-old Washington headquarters and a neighboring building were up by $600 million from an initial $1.9 billion estimate.
That month, Trump made an unusual visit to the construction site during which the two men, clad in hard hats, bickered over the price tag for the makeover.
A significant driver of the cost is security, including blast-resistant windows and measures to prevent the building from collapsing in the event of an explosion.
The Federal Reserve, the world’s most important central bank, makes independent monetary policy decisions and its board members typically serve under both Republican and Democratic presidents
Trump warned Fed fight poised to backfire spectacularly from GOP Senate leader
Matthew Chapman
January 12, 2026
RAW ST0RY
Senate Majority Leader John Thune (R-SD) walks on the day of the Senate Republicans' weekly policy lunch on Capitol Hill in Washington, D.C., U.S., February 19, 2025. REUTERS/Kent Nishimura
The Trump administration's move to criminally investigate the chair of the Federal Reserve could blow up in President Donald Trump's face in a big way, Senate Majority Leader John Thune (R-SD) indicated on Monday.
Specifically, Thune told Semafor's Burgess Everett, the legal threat against Jerome Powell could make it "challenging" to confirm any additional nominees Trump would make to the Fed, because it adds extra difficulty in establishing that such nominees could make monetary policy decisions independent of White House influence.
"We want to make sure that there is a good continuity, and that the central bank maintains its independence," Thune said. "I want to see them operate in an independent way, free of politics."
The Fed has long observed strict policy independence to ensure politicians cannot pressure or threaten the central bank to manipulate monetary policy in ways that benefit their finances or election prospects, which could harm the overall economy or trigger runaway inflation by eroding investor trust in U.S. currency.
The investigation stems from allegations, first made by Trump's Federal Housing Finance Agency director Bill Pulte, that Powell lied to Congress about the scope and cost of a $2.5 billion renovation at the Federal Reserve building in Washington, D.C. Pulte has similarly made accusations that various other critics of the president have committed mortgage fraud, prompting accusations he is abusing his office to fabricate charges against Trump's enemies.
Powell, who was himself appointed by Trump in his first term, has categorically denied there was any effort to mislead Congress about the office renovation. He has further taken the extraordinary step of publicly accusing the Trump administration of using the Justice Department to intimidate the Fed into additional interest rate cuts.
“I have deep respect for the rule of law and for accountability in our democracy. No one — certainly not the chair of the Federal Reserve — is above the law,” Powell stated in a newly released video. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
The attack on the Fed has already created sharp fault lines in the Republican Party. Sen. Thom Tillis (R-NC), who sits on the Senate Banking Committee, has already vowed to block any Fed nominee, including Powell's replacement, "until this legal matter is fully resolved." And even Trump's own Secretary of the Treasury, Scott Bessent, has reportedly warned the president that prosecuting Powell could destabilize financial markets.
Matthew Chapman
January 12, 2026
RAW ST0RY
Senate Majority Leader John Thune (R-SD) walks on the day of the Senate Republicans' weekly policy lunch on Capitol Hill in Washington, D.C., U.S., February 19, 2025. REUTERS/Kent Nishimura
The Trump administration's move to criminally investigate the chair of the Federal Reserve could blow up in President Donald Trump's face in a big way, Senate Majority Leader John Thune (R-SD) indicated on Monday.
Specifically, Thune told Semafor's Burgess Everett, the legal threat against Jerome Powell could make it "challenging" to confirm any additional nominees Trump would make to the Fed, because it adds extra difficulty in establishing that such nominees could make monetary policy decisions independent of White House influence.
"We want to make sure that there is a good continuity, and that the central bank maintains its independence," Thune said. "I want to see them operate in an independent way, free of politics."
The Fed has long observed strict policy independence to ensure politicians cannot pressure or threaten the central bank to manipulate monetary policy in ways that benefit their finances or election prospects, which could harm the overall economy or trigger runaway inflation by eroding investor trust in U.S. currency.
The investigation stems from allegations, first made by Trump's Federal Housing Finance Agency director Bill Pulte, that Powell lied to Congress about the scope and cost of a $2.5 billion renovation at the Federal Reserve building in Washington, D.C. Pulte has similarly made accusations that various other critics of the president have committed mortgage fraud, prompting accusations he is abusing his office to fabricate charges against Trump's enemies.
Powell, who was himself appointed by Trump in his first term, has categorically denied there was any effort to mislead Congress about the office renovation. He has further taken the extraordinary step of publicly accusing the Trump administration of using the Justice Department to intimidate the Fed into additional interest rate cuts.
“I have deep respect for the rule of law and for accountability in our democracy. No one — certainly not the chair of the Federal Reserve — is above the law,” Powell stated in a newly released video. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
The attack on the Fed has already created sharp fault lines in the Republican Party. Sen. Thom Tillis (R-NC), who sits on the Senate Banking Committee, has already vowed to block any Fed nominee, including Powell's replacement, "until this legal matter is fully resolved." And even Trump's own Secretary of the Treasury, Scott Bessent, has reportedly warned the president that prosecuting Powell could destabilize financial markets.
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