Is Trump going to destroy the financial system?

[Jodistrict]

The US attorney’s office in the District of Columbia has opened a criminal investigation into Jerome H. Powell, the Federal Reserve chair.  In the past, Trump has continually attacked Powell for not slashing interest rates.  Now, he appears to be attempting to use the criminal law to pressure the head of the Federal Reserve to follow his commands.

https://www.nytimes.com/2026/01/11/us/politics/jerome-powell-fed-inquiry-trump.html?unlocked_article_code=1.D1A.AEqo.Ygxv6Zoi8Gys&smid=url-share

One of the pillars of the American financial system is that the Federal Reserve was intentionally isolated from political control, so that rational decisions could be made based on the economy and not politics.  The Federal Reserve was formed based on the painful experience of prior depressions and banking panics in America. 

https://www.federalreservehistory.org/essays/federal-reserve-history

 

[LordFall]

There's no economic theory that can prove that fed independence is better. China proved that with their current dominance under a hybrid planned economy. Especially considering the current arms race happening globally with AI I don't necessarily fault the current administration for wanting to heavily pressure the fed. 

[Breathe]

He'll milk the fed for his billionaire friends and take full control.