Legal Showdown: Trump vs. Powell - A Battle for Fed Control

The Trump administration's threat to indict Federal Reserve Chair Jerome Powell over his Congressional testimony is seen as a pretext for controlling interest rates. While Powell views these actions as undermining the central bank's independence, the administration faces criticism for endangering economic policy integrity.

In a controversial move, the Trump administration has issued threats to indict Federal Reserve Chair Jerome Powell, citing his Congressional testimony regarding a Fed building project as a pretext. Powell has labeled the action as a bid to increase government influence over monetary policy.

This development has sparked immediate backlash, with Republican Senator Thom Tillis criticizing the potential indictment as a threat to the Justice Department's independence. He has vowed to oppose any future nominees from President Trump for the Federal Reserve until the situation is resolved.

The subpoenas issued by the Justice Department to the Federal Reserve mark a significant point in the ongoing struggle between President Trump and Powell, with implications for the Fed's future direction and rate-setting independence.

(With inputs from agencies.)