In a dramatic clash between politics and economic policy, former U.S. President Donald Trump's administration has ignited controversy this month with a criminal probe targeting Federal Reserve Chair Jerome Powell. The move, criticized as a bid to influence interest rates, has drawn rare bipartisan condemnation—even from Trump’s own Republican allies. 💥
Independence Under Fire
Powell called the Justice Department’s subpoenas—ostensibly about a building renovation—a 'pretext' to undermine the Fed’s autonomy. Former Fed chairs Janet Yellen, Ben Bernanke, and Alan Greenspan joined forces this week, warning in a joint statement that the probe risks 'highly negative consequences for inflation' and market stability. 📜⚖️
GOP Divided
Republican Senator Thom Tillis slammed the investigation as a 'huge mistake,' vowing to block Trump’s future Fed nominees until the issue is resolved. Others, like Senator Lisa Murkowski, echoed concerns on X: 'If the Fed loses independence, our economy suffers.' But House Speaker Mike Johnson remained neutral, urging patience. 🏛️🤝
Market Jitters
The probe has already spooked investors, driving up long-term Treasury yields. With Powell’s term ending in May 2026 and a Supreme Court battle looming over another Fed official, analysts fear prolonged uncertainty. Powell, however, remains defiant: 'No one is above the law… but this is about pressure, not policy.' 📈💼
As Trump denies involvement, the Fed’s credibility hangs in the balance. Will this showdown redefine central banking—or backfire spectacularly? Stay tuned. 🌍🔍
