"The independence and credibility of America's central bank is under threat after the Department of Justice opened a criminal investigation into Federal Reserve chair Jerome Powell, knocking the US dollar. In a startling development, US prosecutors have launched a criminal investigation into Powell over a $2.5bn renovation of the Federal Reserve's headquarters, and into his testimony about the project to the Senate banking committee in June last year."
"The move is a dramatic escalation in the long-simmering tensions between the Fed and the Trump White House, with the US president repeatedly rubbishing Powell for not cutting interest rates more quickly. After news of the investigation broke last night, Powell came out fighting, insisting that he had been threatened with criminal charges because the Fed had set interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president."
Department of Justice prosecutors have opened a criminal investigation into Federal Reserve chair Jerome Powell over a $2.5bn renovation of the Fed's headquarters and his Senate testimony about the project. The probe has weakened the US dollar and escalated tensions between the Fed and the Trump White House, where the president has repeatedly criticized Powell for not cutting interest rates faster. Powell said he faced threats of criminal charges because the Fed set interest rates to serve the public rather than follow presidential preferences. Powell's term ends in May, raising concerns a successor could pursue politically driven monetary policy and further undermine institutional confidence.
Read at www.theguardian.com
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