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Consider This from NPR

What happens if the Fed loses its independence?

13 Jan 2026

Transcription

Chapter 1: What prompted the Trump Justice Department to subpoena the Federal Reserve?

0.031 - 2.963 Juana Summers

Can you guess who President Trump is talking about here?

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3.003 - 17.055 Donald Trump

He's strong. He's committed. He's smart. And if he is confirmed by the Senate, Jay will put his considerable talents and experience to work leading our nation's independent central bank.

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17.075 - 27.892 Juana Summers

That is the president in 2017 praising Jerome Powell, his nominee for Federal Reserve chairman. What does Trump say about Powell these days? Well, here he is last November at an investment event.

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28.012 - 32.299 Donald Trump

He's got some real mental problems. And there's something wrong with him.

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32.414 - 53.606 Juana Summers

It's a little different. After their friendly start, the chairman and president had a rocky relationship during Trump's first term. Things got worse as the COVID-19 pandemic wreaked havoc on the economy and inflation skyrocketed. In 2024, when Trump ran for re-election, he said he wouldn't appoint Powell for another 10-year term.

54.247 - 61.257 Juana Summers

And things have only gotten worse since Trump was sworn in last January. He's called Powell a political hack, among other things.

61.237 - 68.188 Donald Trump

But we have a guy that's just a stubborn mule and a stupid person that is making a big mistake.

68.208 - 78.184 Juana Summers

And the president has tried to strong-arm Powell into drastically cutting interest rates. Trump has also closely scrutinized building reservations the Fed authorized that went over budget.

78.204 - 89.392 Donald Trump

The Fed is supposed to sit there and say where interest rates are going and a couple of other very easy things to do. And he spent two and a half billion dollars. I think he's You know, I think he's got some problems.

Chapter 2: How has President Trump influenced Jerome Powell's leadership at the Fed?

103.387 - 109.774 Scott Horsley

You're including the Martin renovation. That's our entire capital. You just added in a third building is what that is. That's a third building.

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109.894 - 112.337 Donald Trump

It's a building that's being built. No.

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112.537 - 118.283 Scott Horsley

It was built five years ago. We finished Martin five years ago. It's part of the overall work.

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118.303 - 125.331 Juana Summers

Over the weekend, that changed. NPR chief economics correspondent Scott Horsley explained it on our sister podcast up first.

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125.632 - 141.97 Unknown

The Federal Reserve says it was served with grand jury subpoenas on Friday, seeking information about the multi-billion dollar makeover of the Fed's headquarter building here in Washington and testimony that Fed Chairman Jerome Powell gave the Senate Banking Committee about that project back in June.

142.102 - 146.009 Juana Summers

The subpoenas prompted Powell to release an uncharacteristically strong statement.

146.249 - 157.63 Jerome Powell

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.

157.863 - 179.067 Juana Summers

Trump has not been shy about trying to influence the Fed. And while he told NBC News he doesn't know anything about the Department of Justice investigations, members of Congress, including some Republicans, say they're concerned the independence of the Federal Reserve is now at risk. Consider this. The Federal Reserve decides monetary policy across the United States.

179.548 - 222.025 Juana Summers

Its decisions help shape the global economy. What happens if that independence is threatened? From NPR, I'm Juana Summers. It's Consider This from NPR. Adam Pozen is president of the Peterson Institute for International Economics. He studied central bank independence for a very long time. He says governments should treat monetary policymakers like surgeons or airline pilots.

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