US probe into Fed hits global markets as worry of its independence grows
NegativeWorld Affairs

- The ongoing criminal investigation into Federal Reserve Chair Jerome Powell by the Trump administration is causing significant turmoil in global markets, as it raises concerns about the independence of the U.S. central bank. The probe centers on alleged inaccuracies in Powell's congressional testimony regarding budget overruns for renovations at the Fed's headquarters.
- This investigation is perceived by many as an attempt by Trump to exert control over U.S. monetary policy, particularly in relation to interest rates, which could have far-reaching implications for economic growth and stability.
- The situation highlights a broader struggle between political influence and institutional independence, as the Fed navigates external pressures while attempting to maintain its credibility and effectiveness in managing the economy amidst dissenting voices regarding its recent rate cuts.
— via World Pulse Now AI Editorial System



