Jerome Powell Stresses Fed Independence Amid DOJ Probe

Federal Reserve Chair Jerome Powell addressed the press about avoiding political entanglements while a DOJ probe looms over cost overruns for renovations. As President Trump seeks a successor, speculation centers on potential candidates, highlighting concerns over maintaining the Fed's independence amidst political pressures to cut interest rates.

In an unexpected turn, Federal Reserve Chair Jerome Powell urged his successor to steer clear of politics while speaking at a press conference amid a Department of Justice investigation into the Fed's renovation costs. Powell emphasized that maintaining independence is crucial.

During the session, Powell faced questions about the DOJ probe and his plans post-chairmanship, remaining steadfastly non-committal. The meeting saw Fed members voting to keep interest rates steady, without substantial guidance on future policy shifts as markets anticipate potential rate cuts.

With President Donald Trump pondering Powell's successor, names such as Rick Rieder and Kevin Hassett are emerging. The selection has sparked concerns over the Fed's autonomy, with Trump advocating for more aggressive rate cuts beyond current inflation targets.

(With inputs from agencies.)