Trump's Pressure Campaign Targets the Fed: Powell Under Investigation

Jerome Powell, the Federal Reserve chair, is under a criminal investigation by the Justice Department, raising concerns about political interference. This move intensifies President Trump's campaign against Powell, whom he accuses of misleading Congress about renovation costs. Observers warn this could undermine the Fed's independence.

Jerome Powell, head of the U.S. Federal Reserve, is facing a criminal investigation by the Justice Department over allegations of misleading Congress about a renovation project's costs. This development intensifies President Trump's pressure on the central bank for not lowering interest rates rapidly enough.

Critics argue that Trump's actions threaten the independence of the Federal Reserve, a crucial pillar for maintaining economic stability. Since his return to office, Trump has targeted various government bodies to align them with his agenda, with the Fed being a significant focus.

The Fed is responsible for key economic functions, including controlling inflation and setting interest rates. Trump's moves, coupled with the investigation into Powell, could have long-standing implications for financial governance and investor confidence in the U.S. economy.

(With inputs from agencies.)