Donald Trump vs Jerome Powell: Timeline Of Events That Escalated Into Ugly Battle

The long-simmering feud between US President Donald Trump and Federal Reserve Chair Jerome Powell has reached its most explosive point. A criminal investigation launched by the Department of Justice against the Fed Chair is the reason behind the latest round of public spats between Powell and Trump.

On Jan. 11, Powell said the administration had threatened him with a criminal indictment connected to the renovation of the Federal Reserve’s headquarters. In a video message, Powell said such a move would put the economic security of ordinary Americans at risk, adding that it was driven by the President's whims, according to CNN.

On Jan. 13, Trump escalated the dispute by labelling Powell "incompetent" or "crooked", even as the Department of Justice faced opposition over its criminal investigation of the Fed chair. Trump’s allies, both within the administration and among lawmakers on Capitol Hill, have begun to distance themselves from the prospect of prosecuting Powell, Axios reported. Many Republicans said that despite policy differences, they do not believe Powell is a crook.

In a show of unity, former Federal Reserve chairs Janet Yellen, Ben Bernanke and Alan Greenspan issued a joint statement saying, "The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine that independence."

Against this backdrop, here is a timeline of how the conflict between Trump and Powell unfolded over the years.

November 2017 | Nomination

During his first term as US President, Trump nominated Powell to succeed Janet Yellen as chair of the Federal Reserve. Trump said then that the Fed requires "strong, sound and steady leadership" and Powell "will provide exactly that type of leadership".

September 2018 | Early tensions emerge

The Federal Reserve raised its benchmark interest rate by a quarter of a percentage point and revised its economic growth outlook upward for the next two years. This drew criticism from Trump, who said he was “not happy” with the central bank’s decision to raise rates.

October 2018 | Public attacks intensify

In a barrage of criticism, Trump described the Federal Reserve as “crazy” and “loco,” accusing the central bank of having “gone wild” with its interest-rate increases.

August 2019 | The ‘enemy’ remark

Amid frustration over rate cuts, Trump compared China’s President Xi Jinping with Powell, saying, “My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?”

March 2020 | A brief pandemic truce

With the outbreak of Covid-19, the Federal Reserve cut interest rates to near zero and launched emergency measures. Trump temporarily praised Powell, saying he had “really stepped up.”

November 2021 | Powell renominated

US President Joe Biden renominated Powell for a second term as Fed chair.

2022-2024 | Inflation battle

The Federal Reserve embarked on an aggressive rate-hiking cycle to curb surging inflation, further entrenching divisions between Powell and Trump.

Early 2025 | Pressure resumes

After returning to the White House, Trump wanted the Fed to lower interest rates, claiming he had a better grasp of monetary policy than those responsible for setting it.

Mid 2025 | Rhetoric and legal limits

Trump called Powell a “major loser.” Around the same time, the US Supreme Court noted in a ruling that the Federal Reserve was a “uniquely structured, quasi-private entity,” declining to open a pathway for Powell’s removal.

July 2025 | Headquarters confrontation

Trump said he had identified what he described as a viable path to oust Powell, accusing him of mismanagement over the central bank’s $2.5 billion headquarters renovation. Trump called the spending “disgraceful” and said he never believed the Fed chair required what he characterised as a “palace.”

January 2026 | Justice Department investigation

The dispute reached its most serious phase as the Department of Justice launched a criminal investigation into the Fed’s renovation budget.