"The Trump administration's criminal investigation of Federal Reserve Chair Jerome Powell appeared on Monday to be emboldening defenders of the U.S. central bank, who pushed back against President Donald Trump's efforts to exert more control over the Fed. The backlash reflected the overarching stakes in determining the balance of power within the federal government and the path of the U.S. economy at a time of uncertainty about inflation and a slowing job market."
"This has created a sense among some Republican lawmakers and leading economists that the Trump administration had overstepped the Fed's independence by sending subpoenas. The criminal investigation - a first for a sitting Fed chair - sparked an unusually robust response from Powell and a full-throated defense from three former Fed chairs, a group of top economic officials and even Republican senators tasked with voting on Trump's eventual pick to replace Powell as Fed chair when his term expires in May."
The Trump administration opened a criminal investigation into Federal Reserve Chair Jerome Powell, prompting robust defenses of the Fed from former chairs, top economic officials and some Republican senators. Subpoenas issued by the administration raised concerns among lawmakers and economists that presidential actions overstepped the Fed's independence. Powell has resisted political pressure by setting benchmark interest rates based on economic data. White House press secretary Karoline Leavitt denied direct presidential direction of the Justice Department while criticizing Powell's performance. The investigation intensified debate over the balance of power, Fed independence and the economic outlook amid uncertain inflation and a slowing jobs market.
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