Is Powell’s Caution Slowing a Much-Needed Capital Injection?
Jerome Powell’s pushback against the Trump administration’s new criminal probe has reignited debate over the Federal Reserve’s independence.
While Powell says the investigation is political pressure in disguise, many in the markets are focused on a different question: is his resistance to cutting interest rates delaying the liquidity injection businesses and investors are waiting for?
Trump-aligned economists argue that deeper rate cuts would unleash new capital across the economy, while Powell maintains the Fed must stick to data — not political timelines. With inflation cooling and uncertainty rising, the tension between caution and stimulus is becoming harder to ignore. The coming months may reveal whether the Fed’s stance is safeguarding stability or slowing momentum.