On the eve of the Federal Reserve's "receiving subpoenas," Trump "lambasted" the Department of Justice prosecutors as "weak and incompetent," saying they "dare not prosecute the targets."

At a White House event last week, Trump publicly criticized federal prosecutors for their slow actions and unwillingness to prosecute his designated targets, accusing these prosecutors of being "weak and incompetent," which made it difficult for senior officials at the Department of Justice to advance their work. This intense confrontation occurred the day before the Department of Justice issued a subpoena to the Federal Reserve.

On January 13, according to The Wall Street Journal, sources revealed that this event, originally intended for a ceremonial group photo, turned into a direct attack by the president on the group of prosecutors. Trump specifically named and criticized certain prosecutors at the White House event, expressing that he felt "betrayed," and particularly complained that the Department of Justice had not yet filed a lawsuit against his main Democratic opponent, California Senator Adam Schiff.

The report pointed out that this conflict highlights the increasingly tense relationship between Trump and the judicial system, raising concerns in the market about political interference in judicial independence.

Just one day after this White House event, federal prosecutors issued a grand jury subpoena to the Federal Reserve, investigating Fed Chairman Powell regarding his testimony last summer about the central bank's building renovation project.

According to a previous article by Wall Street Watch, Powell stated in a video statement last Sunday that this investigation was politically motivated. Trump publicly questioned Powell's capabilities at a press conference on Tuesday, stating that he had "overspent by billions of dollars" and even suggested that there might be issues of "incompetence or dishonesty."

White House Photo Op Turns into "Struggle Session": President Feels Betrayed

The report noted that, according to informed sources, dozens of federal prosecutors responsible for offices across the country were invited to the White House for a photo op last Thursday (January 8).

After Attorney General Pam Bondi introduced this group of prosecutors, the atmosphere in the room took a sharp turn. Trump began to criticize the efficiency of those present, even naming specific district prosecutors, bluntly stating that he felt betrayed.

Among this series of grievances, Trump specifically mentioned that the Department of Justice had not yet filed a lawsuit against his prominent Democratic opponent, California Senator Adam Schiff.

The Department of Justice is currently investigating whether Schiff is involved in mortgage fraud, while the senator has previously dismissed the investigation as a false political retaliation.

Informed sources indicated that this face-to-face reprimand reflects Trump's growing impatience with the Department of Justice in recent weeks. He has repeatedly complained about Attorney General Bondi, believing she is an "ineffective executor" of his agenda.

According to The Wall Street Journal, this outburst at the White House is seen as part of the president's pressure campaign aimed at forcing the agency to more aggressively pursue his political priorities.

Subpoena Controversy: Trigger Points and Responses of the Fed Investigation

The report stated that just one day after this intense White House meeting, federal prosecutors formally issued a grand jury subpoena to the Federal Reserve on Friday. The core of this investigation revolves around Fed Chairman Powell's testimony regarding the central bank's building renovation project Columbia District Federal Prosecutor Jeanine Pirro, who attended an event at the White House, posted on social media on Monday that the issuance of the subpoena was an action taken by her office after multiple requests for information went unanswered.

Reports indicate that, according to informed sources, the inquiry began last November, and a lawyer from Pirro's office had emailed the Federal Reserve twice last month—once before Christmas and once after—seeking information about the renovations, but at that time, the emails did not mention any deadlines or criminal investigations.

Pirro stated in her post:

"If they had responded to our outreach, none of this would have happened. This office makes decisions solely based on right and wrong, and nothing else."

The Federal Reserve reacted strongly to this, with Powell directly stating in a video statement on Sunday that the investigation was politically motivated. According to an article from Wall Street Journal, Powell stated that this was the result of the Federal Reserve not following the president's preferences, and he would continue to fulfill the role for which he was confirmed by the Senate.

In response to media inquiries on Tuesday, Trump did not shy away from attacking Powell, stating that he "not only overspent by billions of dollars but is either incompetent or dishonest," and asserted that Powell "is not doing a good job."

Internal Turmoil at the Justice Department: Personnel Changes and Low Morale Under Pressure

Reports indicate that Trump's high-pressure tactics have caused significant upheaval within the Justice Department. Informed sources say that the president's pressure has made personnel within the department feel uneasy, including some lawyers brought in by this administration.

At the end of last year, Trump forced a conservative federal prosecutor in Virginia to resign because that prosecutor reported to superiors that there was not enough evidence to prosecute New York Attorney General Letitia James and former FBI Director James Comey.

The subsequent successor, former Trump lawyer Lindsey Halligan, quickly filed lawsuits against the two, but the cases were ultimately dismissed by a judge, ruling that Halligan's appointment was itself illegal.

This turmoil has also affected the Washington office led by Pirro. According to informed sources, the subpoena against the Federal Reserve further undermined the morale of that office, and since Trump's return to the White House, a large number of lawyers have left or been fired.