Fed Independence Under Fire? The Jerome Powell Criminal Probe!

A massive shockwave is hitting the U.S. financial system! Federal prosecutors have officially opened a criminal investigation into Federal Reserve Chair Jerome Powell, as first reported by the New York Times.

What You Need to Know:

The Allegations: The investigation, approved by U.S. Attorney Jeanine Pirro, centers on the $2.5 billion renovation of the Fed’s headquarters. Prosecutors are looking into whether Powell misled Congress about the project's cost overruns and "luxury" features like VIP dining rooms and premium marble.

Fed’s Reaction: Powell has strongly hit back, calling the probe an "unprecedented challenge" to the Fed's independence. He accused the Justice Department of using criminal threats to pressure him into lowering interest rates.

Market Impact: This leadership crisis comes just months before Powell’s term expires in May 2026. While the Dow hit record highs recently, this legal battle creates significant uncertainty for future monetary policy.

Political Tension: The move is seen as a major escalation in the ongoing conflict between the Trump administration and the central bank over interest rate cuts.