US EditionStock futures fall after Powell confirms criminal probe into Fed
Powell faces a DOJ criminal probe over testimony on Fed HQ cost overruns amid claims of political pressure to influence monetary policy, triggering U.S. market reactions.
- On Sunday, Jerome Powell disclosed subpoenas from the U.S. Department of Justice for the Fed's $2.5 billion headquarters renovation, calling the probe a political 'pretext', while on Tuesday global central bank heads including Andrew Bailey and Christine Lagarde defended him.
- Tensions rose as the Fed resisted faster rate cuts, prompting public pushback between the White House and the central bank after President Donald Trump demanded rate slashes since 2025 and tried to remove Lisa Cook, Federal Reserve governor, last year.
- Jean-Claude Trichet warned Trump's attacks on the Fed have grave ramifications, Olli Rehn said it has global consequences, and Jamie Dimon said, `Everyone we know believes in Fed independence`.
- Central bankers caution that politicising monetary policy risks higher inflation and market volatility, while Citi analysts warned threats to central-bank independence could increase debt servicing pressure and spread beyond the U.S.
- Powell can remain on the Fed board until January 31, 2028, while analysts note public and private debt as a share of GDP exceeds pre-Lehman levels and investors say markets appear too calm.
274 Articles
274 Articles
Trump’s attack on Powell threatens a support of the world economy, markets and the same dollar. History gives strong examples of inflation triggered by political interference
U.S. President Donald Trump's attacks at the Federal Reserve have grave implications for global financial stability, warned Jean-Claude Trichet, who was president of the European Central Bank and was governor of the Bank of France...
The Fed has too much power
Lost in the debate about the feud between President Donald Trump and the Federal Reserve is a fundamental question: do independent central bankers who set national interest rates have too much power? Of course, it’s hard to excuse the White House’s clumsy assaults on Fed independence. First there was Trump’s attempt last year to fire Lisa Cook, a Federal Reserve governor, based on unproven allegations of mortgage fraud. Now, the Department of Ju…
EDITORIAL. Threats and insults, and now legal proceedings against the boss of the Federal Reserve, forcing him to respond publicly, could affect the credibility of the institution and weaken the sustainability of the enormous US debt. This is the opposite effect sought by the President of the United States.
Global central bankers show support for US Fed Chair Jerome Powell
SBS Finance Editor Ricardo Gonçalves speaks with Hebe Chen from Vantage Australia about the day's sharemarket action including the significance of a joint statement released by a dozen global central bankers, including the RBA's Michele Bullock, supporting US Federal Reserve Chairman Jerome Powell, who is under investigation by the US administration.
Coverage Details
Bias Distribution
- 53% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
