Federal Reserve Under Fire: Jerome Powell Faces Investigation Amid Trump Pressure

Jerome Powell, head of the U.S. Federal Reserve, is under investigation by the Justice Department for allegedly misleading Congress about a renovation project, amidst President Trump's ongoing pressure on the Fed. This raises concerns about the central bank's independence and its implications for the U.S. economy.

In a surprising development, Jerome Powell, the head of the U.S. Federal Reserve, is facing a criminal investigation initiated by the Justice Department. The probe centers around allegations that Powell misled Congress concerning a renovation project at the central bank's headquarters. This move signifies another escalation in President Donald Trump's campaign to exert influence over the central bank, which he believes should lower interest rates more rapidly.

The White House maintains that Trump did not order the investigation, yet the president has hinted that Powell should face repercussions for the renovation's excessive costs. Analysts warn that Trump's actions could undermine the Fed's independence and affect global confidence in economic stability. Debate continues on whether this unprecedented pressure might erode the reserve's ability to perform its critical function of managing the nation's monetary policy.

While past presidents have privately pushed the Fed on rate policy, Trump's direct and public tactics are breaking new ground. The growing tension raises questions about the potential long-term effects on America's economy and its currency's standing worldwide, as investors and lawmakers eye the situation warily amid a backdrop of political maneuvering and economic uncertainty.

(With inputs from agencies.)