Power Play: Trump vs. Powell in Fed Control Battle

The Trump administration is threatening Federal Reserve Chair Jerome Powell with indictment over Congressional testimony, escalating a battle for control over monetary policy. Powell calls it a pretext, as tensions rise between Trump's desire for lower interest rates and the Fed's independence.

The Trump administration has stepped up its confrontation with Federal Reserve Chair Jerome Powell, threatening him with indictment linked to his Congressional testimony about a Fed building project. Powell described this as a 'pretext' for gaining influence over monetary policy, a move that immediately drew criticism from political figures.

Senator Thom Tillis, a Republican on the Senate Banking Committee, criticized the indictment threat, saying it questions the Department of Justice's impartiality. Tillis announced his opposition to any Trump nominees to the Federal Reserve until the situation is resolved, reflecting the broader implications of the administration's actions.

Powell, maintaining his stance on the independence of central banking, revealed subpoenas in a statement that underscored the pressure from Trump for lower interest rates. Despite Trump's discontent with Powell's performance, financial markets remain steady with expectations of future rate cuts, showing resilience to political turbulence.

(With inputs from agencies.)