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Defiant independence from the Federal Reserve catches Trump off guard

January 13, 2026

The Justice Department's subpoena of the Federal Reserve regarding a construction project has taken White House officials by surprise, particularly President Trump, who has been advocating for a rapid reduction in the federal funds rate to approximately 1%. This development occurs at a pivotal moment for the U. S. economy, highlighting tensions between the executive branch and the central bank's independence.

FILE - President Donald Trump shakes hands with Federal Reserve board member Jerome Powell after announcing him as his nominee for the next chair of the Federal Reserve, in the Rose Garden of the White House in Washington, Nov. 2, 2017. (AP Photo/Alex Brandon, File)

Credit: (Alex Brandon / Associated Press)

Key Highlights

The Justice Department has subpoenaed the Federal Reserve.
Trump is pushing for the federal funds rate to be lowered to around 1%.
White House officials were caught off guard by the subpoena.
The situation underscores tensions between the executive branch and the Fed's independence.
This event is occurring at a critical time for the U. S. economy.

Sources

Defiant independence from the Federal Reserve catches Trump off guard

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

Defiant independence from the Federal Reserve catches Trump off guard

Key Highlights

Sources

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