Summary
President Trump's Justice Department is investigating Federal Reserve Chair Jerome Powell for his Congressional testimony about a Fed building project. This move escalates the ongoing conflict between President Trump and Powell concerning interest rate policies. The situation may impact the credibility and independence of the Federal Reserve and could affect financial markets and future Fed leadership.
Key Facts
- President Trump's Justice Department is investigating Fed Chair Jerome Powell.
- The investigation concerns Powell's testimony about a Federal Reserve building project.
- President Trump has had ongoing disagreements with Powell on interest rate policies.
- Powell's term as Fed chair ends in May, but he can remain as a governor until 2028.
- Financial markets have not reacted strongly to the news.
- All living former Fed chairs and other officials condemned the investigation.
- Senator Thom Tillis expressed concerns about the impact on the Department of Justice's independence.
- The Supreme Court will hear a related case about President Trump's power to fire Fed officials.
