Fed Independence at Risk: Powell Faces Criminal Probe Amid Political Storm

The Trump administration has launched a criminal investigation into Federal Reserve Chairman Jerome Powell, drawing criticism from former Fed leaders and Trump's Republican allies. The probe, initiated by U.S. Attorney Jeanine Pirro, centers on cost overruns in a renovation project. This move threatens Fed independence, sparking global concern.

The Trump administration's decision to initiate a criminal investigation into Federal Reserve Chair Jerome Powell on Sunday has drawn widespread condemnation from influential figures across the political spectrum, including former Fed leaders and prominent Republican senators.

U.S. Attorney Jeanine Pirro, a close ally of President Trump, launched the probe, reportedly without the knowledge of either Attorney General Pam Bondi or Deputy Attorney General Todd Blanche. The investigation stems from alleged cost overruns in a renovation project at the Fed's headquarters, with Powell's congressional remarks reportedly at its center.

This development has been met with alarm, as it threatens the Fed's independence, a key pillar of economic stability. Global central bankers and U.S. lawmakers have expressed concerns over the implications, warning of potential harm to the broader economy if political interference with monetary policy persists.

(With inputs from agencies.)