Trump's feud with US Fed chair Powell rattles investors

"United States Federal prosecutors have launched a criminal investigation into Federal Reserve Chairman Jerome Powell's testimony to Congress over the $2.5 billion (2.14 billion) renovation of the US central bank's headquarters in Washington, D.C.. Powell confirmed the probe Sunday in a statement on social media platform X, hitting back at what he said was in fact pressure from the Trump administration over interest rate policy."

"What triggered the row between Trump and Powell? Trump has grown increasingly vocal in his criticism of the Fed's decisions, notably last March when the US central bank held interest rates steady. The president wrote on his Truth Social platform that the Fed would be "MUCH better off CUTTING RATES." In April's so-called Liberation Day announcement, Trump said that lower rates would help the US economy to deal with his sweeping new import tariffs on goods entering the country from major trading partners."

"After calling Powell "stupid" and a "numbskull," the president went further in July after the Fed still failed to cut rates, saying the policy was "hurting people." That same month, Trump even visited the Fed's headquarters the first such trip by a sitting president in decades, which was widely seen as expressing his dissatisfaction with Powell. Trump appointed Powell in 2017, but the two have often been at odds over interest rate policyImage: Julia Demaree Nikhinson/AP Photo/picture alliance"

Federal prosecutors have launched a criminal investigation into Federal Reserve Chair Jerome Powell's testimony to Congress concerning the $2.5 billion renovation of the Fed's Washington headquarters. Powell confirmed the probe on social media platform X and said he faced pressure from the Trump administration over interest-rate policy. President Trump repeatedly criticized the Fed's decisions, urged rate cuts on Truth Social, linked lower rates to tariff policy, and publicly insulted Powell. Trump visited the Fed's headquarters and challenged other senior Fed officials, including efforts to remove Governor Lisa Cook, with resulting litigation awaiting a Supreme Court hearing.

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