Legal AF by MeidasTouch Fed Chair Defies Trump as Prosecution Backfires
Mar 20, 2026
A showdown over Jay Powell’s refusal to resign amid political pressure. A deep dive into the Fed’s rate decision and markets’ reaction. Court moves that undercut the prosecution and the DOJ’s response. Analysis of how political maneuvers backfired and why one Fed seat now matters for monetary control.
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Powell Vows To Stay And Fight
- Jay Powell publicly refused to resign and said he'd serve as chair pro tem if his successor isn't confirmed, using statutory authority to block a rapid replacement.
- Powell also vowed to remain on the Fed board until the DOJ investigation is "well and truly over" and cleared with transparency and finality.
Don’t Bank On Politically Driven Rate Cuts
- Expect the Fed to decide on interest rates based on FOMC consensus, not political pressure from the White House.
- Only one or two FOMC members even supported cutting rates, so markets should not count on Trump-driven cuts in 2026.
Judge Quashes Subpoenas On Fed Remodel Case
- The criminal probe targets cost overruns in Fed building remodels, alleging construction fraud tied to Jay Powell.
- Chief Judge Jeb Boesberg quashed grand jury subpoenas, calling the prosecution without merit and a bad-faith effort.