Powell Under Investigation Amidst Trump’s Pressure on Fed

Jerome Powell, Chairman of the Federal Reserve, faces a Justice Department investigation over alleged misleading testimony about renovation costs at the Fed's headquarters. This move signals a heightening of President Trump's pressure on Powell regarding interest rates, sparking debates over the Fed's independence.

The Justice Department has initiated a criminal investigation against Federal Reserve Chairman Jerome Powell, accused of misleading Congress about renovation expenses at the Fed's Washington headquarters. This situation intensifies President Donald Trump's ongoing efforts to influence U.S. economic policy and interest rates.

President Trump denies ordering the investigation but has repeatedly pressured Powell to cut rates, criticizing the project's cost overruns. Critics argue that Trump's interference threatens the Federal Reserve's independence, a cornerstone for maintaining economic stability.

This controversy arises as Trump's administration has often dismissed independent agency roles, attempting unprecedented control over the Fed. Meanwhile, lawmakers like Senator Thom Tillis voice opposition to Trump's Fed nominees, potentially stalling appointments crucial to future U.S. economic policy direction.

(With inputs from agencies.)