"Now, Trump's federal prosecutors are now investigating Powell. That's the shortest version of the news story that broke Sunday night, when Powell released an extraordinary statement and video, which I urge you to watch and read for yourself. Key quote from Powell, who Trump picked as Fed chair in 2017: "This unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure.""
"As Powell notes, using the threat of a criminal prosecution - fueled by a pretext - to pressure the Fed, which is meant to be independent of the White House but accountable to Congress, is unprecedented. But the pattern most definitely has precedent in the Trump administration: Trump will say he wants or needs something to happen, often using fantastical logic to justify it - and then uses coercion to try to make it happen."
Donald Trump sought to pressure the Federal Reserve to lower interest rates and federal prosecutors have opened an investigation into Fed Chair Jerome Powell. Powell released a statement and video characterizing the action as part of broader administration threats and ongoing pressure. The investigation was reportedly authorized by U.S. Attorney Jeanine Pirro, a Trump ally, while Trump denied knowledge and said the DOJ was not trying to influence rates. Using the threat of criminal prosecution to coerce the Fed would undermine the Fed's intended independence and accountability to Congress. The administration previously attempted to remove Fed governor Lisa Cook, and the Supreme Court will address removal-for-cause authority.
Read at Business Insider
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