Power Play or Overreach? Republicans Keep Pouncing on Fed Chair Powell.

Power Play or Overreach? Republicans Keep Pouncing on Fed Chair Powell.

Economy vs Trump’s Allies and Power Play

The news as it trends.

In what some call a dangerous overreach, Rep. Anna Paulina Luna has referred Federal Reserve Chair Jerome Powell to the DOJ for alleged perjury over testimony about the $2.5 billion Eccles Building renovation.

Critics suggest this is less about accountability and more about political maneuvering — a move aimed at pleasing President Trump, who has reportedly sought Powell’s removal despite federal law protecting his position until May 2026.

Powell, originally appointed by Trump and reappointed by Biden, denied wrongdoing and initiated an internal review.

Yet political allies now threaten legal action, citing luxury upgrades and budget overruns.

Many question the timing and motives, raising serious concerns about the politicization of the Federal Reserve.

This matters — deeply.

The Federal Reserve was granted true independence in 1951, following the Fed-Treasury Accord, which ended decades of presidential interference that led to inflation and instability.

The Fed is tasked with managing interest rates, controlling inflation, and supporting employment — not helping politicians win elections.

Undermining that independence could turn the United States into a “banana republic,” where leaders dictate financial outcomes to serve personal agendas.

Powell’s background is rooted in law and governance.

He earned a Bachelor of Arts in political science from Princeton University in 1975 and a Juris Doctor degree from Georgetown University Law Center in 1979, where he also served as editor-in-chief of the Georgetown Law Journal.

Though he lacks a Ph.D. in economics, his legal and investment banking experience informs a pragmatic and consensus-driven leadership style.

Luna’s qualifications — a biology degree and military service — reflect discipline but lack direct financial expertise.

The contrast between the two figures is striking, and the stakes are high.

If the Fed bends to political will, the consequences affect us all. Borrowing costs become unpredictable.

Wall Street loses confidence. Corruption creeps in. Economic growth stalls.

When the market loses faith in the Fed’s independence, everyday Americans feel the blow — from mortgage rates to paychecks to retirement funds.

This isn’t just about Powell. It’s about protecting the guardrails that keep America’s economy fair, credible, and free from manipulation.

According to law, Powell’s term ends in May 2026 and he cannot be removed without cause.

Attempts to oust him early — especially by allies of a president — sound alarm bells about instability and erosion of institutional trust.

What happens next could define America’s financial future — and test whether stability stands stronger than politics.

Yetunde B reports for Yeyetunde’s Blog.