Senate Minority Leader Chuck Schumer is accusing President Donald Trump of turning the Justice Department into a weapon aimed squarely at Federal Reserve Chair Jerome Powell, and he's warning that millions of Americans could end up paying higher interest rates as a result.
Political Pressure on the Fed Could Hit Your Wallet
Schumer didn't mince words in a post on X Monday, calling out what he described as a politically motivated criminal probe into Powell. The whole thing, he said, is designed to pressure the independent central bank into doing what Trump wants.
"Anyone with two eyes and half a brain knows exactly what the DOJ's criminal probe into Jerome Powell represents: a brazen attempt by Donald Trump to weaponize the DOJ and bully America's central bank into submission," Schumer wrote.
But here's where it gets personal for everyday consumers. Schumer connected the dots between political meddling and the interest rates people actually pay on mortgages, car loans, and credit cards.
"What is this bogus, unfounded, nasty investigation of Jerome Powell, chairman of the Fed, mean to you? It means it's going to be harder to buy a home. It means mortgage rates go up, credit card rates go up, car loan rates go up."
The logic is straightforward: when markets see politicians interfering with Fed independence, they get nervous. And nervous markets mean higher borrowing costs.
"The markets are totally confounded by the asininity of Donald Trump," Schumer said, adding that the resulting uncertainty pushes interest rates higher.
Schumer also went after Trump's priorities, suggesting the president "cares about going after his political enemies and doesn't give a shit about you." He pinned responsibility for current economic conditions squarely on Trump's policies, concluding: "If Trump wants someone to blame, he should simply look in the mirror."
Democrats Rally Behind Fed Independence
Schumer wasn't alone in pushing back. Monday saw a parade of Democratic leaders condemning the reported probe.
Sen. Elizabeth Warren accused Trump of trying to oust Powell so he could install a loyalist, emphasizing that the Federal Reserve should operate independently for the public good, not serve Trump or his wealthy backers.
Sen. Chris Murphy warned that threatening to imprison Powell over interest rate decisions represents corruption and autocratic behavior, urging Americans to maintain their outrage.
Sen. Bernie Sanders called for an immediate end to what he characterized as persecution of Powell and other political opponents.
Rep. Ro Khanna argued that Trump's tariff policies are preventing Powell from lowering rates, putting economic stability and prosperity at risk.
House Minority Leader Hakeem Jeffries went hard at the DOJ itself, calling it corrupt and politically motivated under Trump. He insisted there's no legitimate reason for a criminal probe of Powell and pledged Democrats won't be intimidated.