The President vs. the Fed
Summary
This Frontline episode examines the escalating power struggle between President Donald Trump and Federal Reserve Chair Jerome Powell over monetary policy independence. Correspondent James Jacoby details Trump’s unprecedented attempts to force rate cuts, including public attacks, threats to fire Powell, and a criminal investigation triggered by Powell’s congressional testimony. Experts analyze how this conflict threatens the Fed’s institutional integrity and the broader design of the federal government.
Topics discussed
Introduction: The Trump-Powell power struggle
Powell's revelation of criminal investigation
The Fed's power and Trump's existential stakes
History: From alliance to conflict over rates
Trump's public attacks and 'boneheads' comments
Historical context: Nixon and the 1970s inflation
Legal limits on firing a Fed chairman
Second term: Tariffs, taxes, and rate demands
Liberation Day tariffs and market crash
Senate hearing: Renovation costs as pretext
White House visit and public embarrassment
Attack on Governor Lisa Cook and her lawsuit
DOJ subpoena and Powell's defiant response
Kevin Warsh nomination and confirmation hurdles
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