TOKYO — Earlier this month, central bankers around the globe rushed to Federal Reserve Chair Jerome Powell’s defense.
The burst of monetary solidarity was in response to news on Jan. 11 that Powell was under critical investigation. Ostensibly, it’s related to alleged cost overruns surrounding a Fed headquarters construction project. But, like Powell, investors everywhere know it’s really about US President Donald Trump’s desire for sharply lower interest rates.
Trump spent much of 2025 trying to bully Powell into pushing benchmark rates down to the 1% zone. Along with threatening to fire him, Trump has called Powell everything from “stupid” to a “numbskull” to a “stupid person” to a “stubborn mule.” Unprecedented stuff all around.
