Consider This from NPR What happens if the Fed loses its independence?
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Jan 13, 2026 
Adam Posen, an expert economist and president of the Peterson Institute for International Economics, dives into the critical issue of Federal Reserve independence. He discusses the alarming implications of the Trump Justice Department's subpoenas, which could intimidate the Fed and damage its operational autonomy. Posen explains how political pressure can lead to rising inflation expectations and what happens when the Fed’s leadership is under attack. He warns about the long-term costs of eroded trust in institutions, with potential economic repercussions for the public.
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Trump's Relationship With Powell Evolved
- Juana Summers recounts Trump's shift from praising Jerome Powell in 2017 to publicly attacking him by 2024 and 2025.
- The transcript details Trump's efforts to pressure Powell on rates and criticize Fed building cost overruns.
DOJ Subpoenas Spark Powell's Response
- NPR reports the DOJ served the Fed with grand jury subpoenas about headquarters renovations and Powell's Senate testimony.
- Powell responded saying threat of criminal charges is a power gambit to force the Fed to follow the president's preferences.
Operational Independence Matters
- Central bank independence means operational freedom to make technical monetary decisions without political interference.
- Undermining that independence risks higher inflation because politicians may pressure the Fed to ease policy for short-term gain.