"Powell confirmed the probe Sunday in a statement posted on the social media platform X, hitting back at what he said was pressure from the Trump administration on interest rate policy. During US President Donald Trump's first term and since he returned to the White House one year ago, the pair have clashed repeatedly over interest rate decisions made by Powell The Fed chair has maintained that the central bank must set policy independently guided by economic data rather than political pressure."
"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 lower rates would help the US economy deal with his sweeping new import tariffs on goods from major trading partners. After calling Powell "stupid" and a "numbskull," Trump went further in July after the Fed still failed to cut rates, saying the policy was "hurting people.""
Federal prosecutors have launched a criminal investigation into Federal Reserve Chairman Jerome Powell’s testimony to Congress regarding the $2.5 billion renovation of the Fed’s Washington headquarters. Powell confirmed the investigation and accused the Trump administration of pressuring the Fed on interest-rate policy. President Donald Trump repeatedly criticized the Fed’s decisions, urged rate cuts on social platforms, linked lower rates to tariff policy, and publicly disparaged Powell, including a rare presidential visit to Fed headquarters. Trump also moved against other senior Fed officials, including an effort to remove Governor Lisa Cook, with related litigation awaiting a Supreme Court hearing.
Read at www.dw.com
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