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yesterday

Trump Threatens ‘Gross Incompetence’ Suit Against Powell as January Fed Chair Pick Looms

The remarks sharpen concerns about pressure on the Fed's independence raised by Bank of America CEO Brian Moynihan.

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Brian Moynihan, chief executive officer of Bank of America, during a Bloomberg Television interview in London on Friday, Dec. 5, 2025.
Fed Chair Jerome Powell testifies before the Senate Committee to "examine the Semiannual Monetary Policy Report to the Congress" on Capitol Hill on June 25, 2025.

Overview

  • Bank of America’s Brian Moynihan warned on CBS that the market will punish any loss of an independent Federal Reserve.
  • At Mar-a-Lago, President Trump called Jerome Powell a fool, said he would love to fire him, and signaled he could still do so despite Powell’s term ending in May 2026.
  • Trump said he plans to announce his choice to replace Powell in January, with names such as Kevin Hassett, Kevin Warsh, Christopher Waller, Michelle Bowman, and Rick Rieder reported as contenders.
  • Trump floated a lawsuit accusing Powell of gross incompetence over Fed headquarters renovations, citing costs up to $4.1 billion, while the Fed has put the figure near $2.5 billion.
  • The Fed cut rates for a third straight meeting in December to a 3.5%–3.75% range, as separate legal battles over attempts to oust Governor Lisa Cook head to a Supreme Court hearing in January 2026.