Trump administration probe of Fed’s Powell draws pushback

The Trump administration’s decision to open a criminal probe into Federal Reserve Chair Jerome Powell has sparked strong backlash from Powell himself, former Fed leaders, and several Republican lawmakers, who warn it threatens the central bank’s independence. Powell said the investigation, officially linked to his comments about cost overruns on a Fed building renovation, is a pretext aimed at pressuring the Fed over interest rate policy. Former Fed chairs Janet Yellen, Ben Bernanke, and Alan Greenspan issued a joint statement calling the move unprecedented and dangerous, warning it could harm economic stability and fuel inflation. Some Republican senators, including Thom Tillis, Kevin Cramer, and Lisa Murkowski, also condemned the probe, while Treasury Secretary Scott Bessent reportedly warned it could unsettle financial markets. Although Trump denied direct knowledge of the Justice Department’s actions, the dispute has heightened concerns about political interference in monetary policy, especially as Powell’s term as Fed chair nears its end and tensions between the White House and the Fed continue to grow.

Credit : CGTN