Post Reports Why Fed Chair Jerome Powell isn't backing down
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Jan 14, 2026 
Andrew Ackerman, a banking reporter for The Washington Post, dives into the escalating feud between Jerome Powell and former President Trump, sparked by a DOJ investigation into Powell's statements about Fed renovations. Ackerman discusses the implications of this probe for the Fed's independence and how sustained political pressure can harm the central bank's credibility. He also highlights the potential risks to the economy if the Fed's neutrality is compromised and speculates on who might replace Powell amidst political tensions.
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Powell Frames Probe As Threat To Fed Independence
- Jerome Powell publicly framed the DOJ subpoenas as an attack on Fed independence and policymaking.
- His rare forceful response signaled the gravity of perceived political pressure on monetary policy.
Ackerman Was Surprised By Powell's Tone
- Andrew Ackerman said he was surprised because Powell rarely pushed back publicly against Trump before this video clip.
- Ackerman described Powell's past press answers as flat and non-confrontational until this moment.
Why Fed Independence Matters For Prices
- The Fed's dual mandate is stable prices (roughly 2% inflation) and full employment, set by Congress.
- Markets price in expectations about Fed independence, which affects long-term borrowing costs and inflation expectations.