On the eve of the Fed "receiving a subpoena," Trump "angrily lashed out" at Justice Department prosecutors as "weak and incompetent," saying they "don't dare to prosecute their targets."
At a White House event last week, Trump publicly criticized federal prosecutors for being slow to act and reluctant to prosecute his designated targets, accusing them of being "weak and incompetent," which made it hard for the Justice Department's leadership to push forward its work. This heated confrontation occurred the day before the U.S. Justice Department issued a subpoena to the Federal Reserve.
On January 13, according to the Wall Street Journal, insiders revealed that what was initially intended as a courtesy group photo turned into a direct attack by the president on the prosecutors. At the White House event, Trump singled out some prosecutors for criticism, saying he felt "betrayed" and specifically complained that the Justice Department had yet to file charges against his main Democratic opponent, California Senator Adam Schiff.
The report pointed out, this conflict highlights the growing tension between Trump and the judicial system, and has sparked market concerns about political intervention in judicial independence.
Just one day after this White House event, federal prosecutors issued a grand jury subpoena to the Federal Reserve, investigating Fed Chair Jerome Powell’s testimony last summer about the renovation project of the central bank building.
According to a previous Wallstreetcn article, Powell stated in a video statement last Sunday that the investigation was politically motivated. At a press conference on Tuesday, Trump publicly questioned Powell’s competence, saying he “overspent by tens of billions of dollars” and even hinted at possible “incompetence or dishonesty.”
White House Photo Op Turns into "Struggle Session": President Feels Betrayed
According to the report, insiders described that last Thursday (January 8), dozens of federal prosecutors in charge of offices nationwide were invited to the White House for a group photo.
After Attorney General Pam Bondi introduced the prosecutors, the atmosphere on site changed abruptly. Trump began criticizing those present for inefficiency, even naming specific district prosecutors, bluntly saying he felt betrayed.
Among his complaints, Trump specifically mentioned that the Justice Department had yet to charge his famous Democratic opponent, California Senator Adam Schiff.
The Justice Department is currently investigating whether Schiff is involved in mortgage fraud, while the senator has dismissed the investigation as a false political retaliation.
Insiders said that this public rebuke reflected Trump’s growing impatience with the Justice Department. In recent weeks, he has repeatedly complained about Attorney General Bondi, regarding her as an “ineffective executor” of his agenda.
According to the Wall Street Journal, the White House outburst is seen as part of the president’s campaign to pressure the department to more actively pursue his political priorities.
Subpoena Turmoil: What Triggered the Fed Investigation and Its Response
The report said that just one day after the heated White House meeting, federal prosecutors formally issued a grand jury subpoena to the Federal Reserve on Friday. The focus of the investigation is the testimony of Fed Chair Powell regarding the central bank building renovation project.
Jeanine Pirro, the federal prosecutor for Washington, D.C., who attended the White House event, posted on social media Monday that the subpoena was issued because her office had tried multiple times to get information without success.
According to the report, insiders said the inquiry began last November. A lawyer from Pirro’s office emailed the Fed twice last month—once before and once after Christmas—seeking information about the renovation, but the emails did not mention any deadlines or criminal investigation.
Pirro stated in her post:
“If they had responded to our requests, none of this would have happened. Our office made decisions solely based on right and wrong, with no other considerations.”
The Federal Reserve reacted strongly, with Powell stating in a video message Sunday that the investigation was politically motivated. According to a Wallstreetcn article, Powell said this was a result of the Fed not following the president’s preferences and that he would continue to fulfill the responsibilities for which the Senate confirmed him.
According to a Wallstreetcn article, facing media questions Tuesday, Trump did not shy away from attacking Powell, saying he “overspent tens of billions of dollars, is either incompetent or dishonest,” and asserted that Powell “is not doing a good job.”
Turmoil Within the Justice Department: Personnel Changes and Low Morale Under Pressure
According to reports, Trump’s high-pressure tactics have caused significant upheaval within the Justice Department. Insiders said the president’s pressure has made department staff uneasy, including some lawyers brought in by the current administration.
At the end of last year, Trump forced a conservative federal prosecutor in Virginia to resign because the prosecutor had reported to superiors that there was not enough evidence to charge New York Attorney General Letitia James and former FBI Director James Comey.
His successor, former Trump attorney Lindsey Halligan, quickly filed lawsuits against both, but the cases were ultimately rejected by a judge who ruled Halligan’s appointment itself was illegal.
Such turmoil has also affected Pirro’s Washington office. According to insiders, the subpoena against the Federal Reserve further hit office morale, and since Trump returned to the White House, many lawyers have resigned or been dismissed.
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