Senator Elizabeth Warren (D-Mass.), a senior member of the Senate Banking Committee, issued a strong statement on January 12, 2026, responding to escalating tensions between the Trump administration and Federal Reserve Chair Jerome Powell.
Warren said: “Trump wants to nominate a new Fed Chair AND push Powell off the Board for good to complete his corrupt takeover of our central bank. He is abusing the law like a wannabe dictator so the Fed serves him and his billionaire friends. The Senate must not move ANY Trump Fed nominee.”
Her remarks directly addressed recent developments involving the Department of Justice (DOJ). On Friday, January 10, 2026, the DOJ served the Federal Reserve with grand jury subpoenas, carrying the threat of a criminal indictment against Powell. The subpoenas related to his testimony before the Senate Banking Committee in June 2025, which addressed a multi-year initiative to renovate historic Federal Reserve office buildings.
In a public video statement released Sunday evening, January 11, 2026, Powell described the subpoenas as an “unprecedented action” and characterized the building renovations and his prior testimony as pretexts. He stated that the investigation appeared motivated by the Federal Reserve’s independent approach to setting interest rates, emphasizing: “This is about 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.”
Powell underscored the Fed’s commitment to evidence-based monetary policy free from political pressure, noting his service under four administrations—both Republican and Democratic—without “political fear or favor.” He affirmed his dedication to the Fed’s mandate of price stability and maximum employment, concluding: “Public service sometimes requires standing firm in the face of threats. I will continue to do the job the Senate confirmed me to do with integrity and commitment, serving the American people.”
Warren’s statement, posted shortly after Powell’s statement, framed the administration’s actions as an attempt to undermine the Federal Reserve’s independence. She urged the Senate to withhold action on any nominees President Trump puts forward for the Federal Reserve, including a replacement for Powell, whose term as chair expires in May 2026.
The exchange highlights ongoing friction over the central bank’s autonomy in conducting monetary policy, particularly in light of President Trump’s repeated criticisms of Powell’s decisions on interest rates. Warren’s call reflects broader concerns raised by lawmakers about potential political interference in the institution.
