#jeromepower 💥🚨💥

Federal prosecutors have opened a criminal investigation into the renewal of US$ 2.500 billion at the Federal Reserve's headquarters in Washington.

In an extraordinary video posted by Powell on Sunday night, he described the investigation as a "pretext" resulting from his ongoing struggle with the government over interest rates, and said it was a consequence of "constant threats and pressures" from the administration.

The investigation sends a potentially intimidating message to Powell—and to whoever leads the Fed afterward. President Donald Trump's attacks on the Fed chair have undermined the central bank's traditional political independence, suggesting that whoever replaces Powell when his term ends in May will face continuous pressure. The federal investigation comes as Trump prepares to announce his candidate to replace Powell once his term ends in May.

Trump has even stated that the president should have a voice in interest rate decisions. However, investors and economists value the Fed's independence as a signal that monetary policy makers will consider long-term consequences rather than short-term political whims when steering the economy. Trump and his allies have repeatedly criticized Powell over the past year for not cutting interest rates according to the president's preferences. The Fed lowered rates three times in a row during the second half of last year, although officials have recently indicated it is unlikely they will cut rates again soon.

Trump's campaign of pressure has included a barrage of personal insults directed at Powell and a sustained effort to remove Fed Governor Lisa Cook, appointed by former President Joe Biden. The Supreme Court will hear oral arguments at the end of this month on whether Trump can remove Cook.

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