Trump Team Escalates Pressure on Fed’s Powell, Threatening Criminal Indictment

The Trump administration has significantly intensified its confrontation with Federal Reserve Chair Jerome Powell by threatening him with a criminal indictment related to testimony he gave to Congress about the Federal Reserve’s $2.5 billion renovation of its headquarters. Powell revealed that the Department of Justice served subpoenas to the Federal Reserve, warning of possible criminal charges tied to his June testimony—an action he characterized as a pretext aimed at pressuring the Fed to adopt lower interest rates, aligning monetary policy with the administration’s preferences. Powell defended the central bank’s independence, stating the threats were politically motivated and could undermine market confidence if the Fed were forced to tailor policy to political goals rather than economic evidence. He affirmed his commitment to maintain the Fed’s autonomy and long-term economic stability. The escalation has drawn sharp criticism, including from Republican Senator Thom Tillis, who warned that the DOJ’s credibility could be damaged and vowed to block new Fed nominees until the issue is resolved. Markets responded cautiously, with U.S. stock futures lowering and the dollar weakening amid heightened concerns about political interference in monetary policy. #FedIndependence #JeromePowell #TrumpAdministration #MonetaryPolicy #SlimScan #GrowthStocks #CANSLIM