President Donald Trump Tuesday slammed Federal Reserve Chair Jerome Powell as “incompetent” or “crooked”, even as its Ministry of Justice is confronted growing opposition on his criminal investigation of the head of the central bank.
Trump threw his latest punch at Powell after being asked if the unprecedented action undermines confidence within the Fed, which has long enjoyed independence from the executive branch.
“It’s billions of dollars over budget,” Trump said, apparently referring to the costs associated with a a multi-billion dollar renovation from Fed headquarters in Washington, which is the focus of the DOJ investigation.
“So he’s either incompetent or he’s crooked,” Trump told reporters outside the White House. “I don’t know what he is. But he’s definitely not doing a very good job.”
Trump hurled further insults at Powell after traveling to Michigan to tour a Ford auto plant and deliver a speech to the Detroit Economic Club.
‘This fool will disappear soon,’ Trump said of Powell during the speech.
Trump’s comments come as bipartisan criticism of the investigation and support for the Fed’s independence continue to grow.
“Everyone we know believes in the independence of the Fed” JPMorgan Chase CEO Jamie Dimon told reporters earlier Tuesday after his bank released its fourth quarter results.
“Anything that goes against that is probably not a good idea,” Dimon said. “And in my view it will have the opposite consequences, it will increase inflation expectations and probably interest rates over time.”
Trump dismissed Dimon’s concerns later Tuesday, telling reporters “I think what I’m doing is right” and calling Powell a “bad person at the Fed.”
“He’s done a bad job. We should have lower rates. Jamie Dimon probably wants higher rates. Maybe he makes more money that way,” Trump said.
U.S. President Donald Trump looks on as Federal Reserve Chairman Jerome Powell holds a document during a tour of the Federal Reserve Board building, which is currently under renovation, in Washington, DC, U.S., July 24, 2025.
Kent Nishimura | Reuters
Dimon’s remarks echo similar concerns from a large number of Republican lawmakers, some of whom are reliable Trump supporters.
“If you wanted to design a system that ensured that interest rates would go up, not down, the best way to do that would be to have the Federal Reserve and the executive branch of the United States engage in a fierce competition,” Senate Banking Committee Ranking Member John Kennedy said Monday.
“We need this like we need a hole in the head,” he added.
Treasury Secretary Scott Bessent, meanwhile, expressed concerns to Trump that the DOJ investigation 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 abandon its legal efforts against the Fed and Powell.
“The U.S. Attorney’s Office contacted the Federal Reserve multiple times to discuss the cost overruns and the President’s testimony to Congress, but they were ignored, necessitating the use of legal proceedings, which does not pose a threat,” Pirro wrote in an article on X.
“The word ‘accusation’ came out of Mr. Powell’s mouth, and no one else’s. None of this would have happened if they had simply complied with our request,” Pirro wrote.
“This office makes decisions based on merit, no more, no 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 said Sunday evening that the DOJ had subpoenaed a grand jury and threatened “criminal indictment” based on his previous Senate testimony about ongoing renovations to the central bank’s office buildings.
Powell directly linked the investigation to Trump’s frequent complaints about the Fed lowering interest rates too slowly.
“The threat of criminal prosecution 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 president’s preferences,” he said in a video statement.
“No one, certainly not the chairman of the Federal Reserve, is above the law,” Powell said. “But this unprecedented action must be seen in the broader context of the administration’s continued threats and pressure.”
Trump said the subpoenas had nothing to do with his views on interest rates.
“”No. I wouldn’t even think about doing it that way,” Trump told NBC News Sunday night. “What should put him under pressure is the fact that the rates are way too high. That’s the only pressure he has.”