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Why is Trump probing the Fed?

Asked 3 hours ago

Answer

Trump's probe into the Fed centers on Jerome Powell's testimony about costly renovations at Fed headquarters, but is widely viewed as political retaliation for Powell's refusal to cut interest rates as Trump wanted. The investigation raises concerns about undermining the Fed's independence, with bipartisan and international criticism warning of economic and market risks.

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Reuters

Global central bankers defend Fed's Powell after Trump threat

Reuters · Recent
Reuters
Reuters
Recent
  • Powell receives joint support from global central bankers
  • Trump administration threatens criminal indictment over Fed HQ renovation 12s
  • Central bank leaders stress Powell's integrity and independence 33s
  • Probe draws criticism from finance sector and some Republicans 52s
  • Concerns raised over political influence impacting inflation and markets 59s

References

Global central bankers defend Fed's Powell after Trump threat
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Reuters
15 hours ago
Global central bankers defend Fed's Powell after Trump threat

Powell is at the center of a US administration criminal probe regarding the renovation of the Fed's headquarters, which he called a pretext to win presidential influence over interest rates.

U.S. probe into Fed hits global markets as worry of its independence grows
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France 24
16 hours ago
U.S. probe into Fed hits global markets as worry of its independence grows

For months, President Trump has publicly criticized Fed Chair Powell for not aggressively cutting interest rates, seeking to boost U.S. economic growth.

U.S. Fed Chair calls probe on him 'retaliation' over interest rates
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France 24
21 hours ago
U.S. Fed Chair calls probe on him 'retaliation' over interest rates

Trump has criticized Powell for not cutting interest rates as aggressively as he wanted; Powell called the DOJ action retaliation.

How the Federal Reserve gained its independence
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CBS America
1 day ago
How the Federal Reserve gained its independence

Powell described the investigation as a major test of the Fed's independence, which has been standard since 1951.

White House denies Trump directed Justice Dept. to investigate Powell
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CBS America
1 day ago
White House denies Trump directed Justice Dept. to investigate Powell

Powell claims the threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on public interest rather than presidential preferences, and he will continue serving despite the investigation and months of criticism from President Trump, who has urged the Fed to sharply lower interest rates.

U.S. opens criminal investigation into Fed Chair Jerome Powell
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Euronews
2 days ago
U.S. opens criminal investigation into Fed Chair Jerome Powell

Powell stated the threat of criminal charges is a pretext to undermine the Fed's independence in setting interest rates.

Fed chair Jerome Powell calls federal investigation "unprecedented"
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CBS America
2 days ago
Fed chair Jerome Powell calls federal investigation "unprecedented"

Powell said threat of criminal charges is a result of the Fed setting interest rates based on public interest, not presidential preferences.

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