Powell's Federal Reserve Showdown: A Battle for Independence

The Department of Justice's threat to indict Federal Reserve Chair Jerome Powell has sparked tension between the White House and the Fed. Powell faces pressure to comply with President Trump's directives, highlighting issues of the Fed's independence and economic implications, as legal battles loom.

The Department of Justice's move to potentially indict Federal Reserve Chair Jerome Powell has intensified the heated standoff between the White House and the US central bank. Powell asserts the Friday subpoenas aim to compel him to yield to President Donald Trump's directives.

The subpoenas, addressing costs tied to Fed building renovations, fundamentally question the Fed's political independence and power distribution within the federal government, which could significantly impact the US economy.

A unified response from former Fed chairs and prominent economists warns of the economic risks posed by the Trump administration's actions, emphasizing the importance of the Fed's autonomy for job markets and loan accessibility.

(With inputs from agencies.)