US justice department opens criminal probe into Fed chair Jerome Powell

Shockwaves are reverberating through Washington D.C. and financial markets alike as news emerges that the U.S. Justice Department has reportedly opened a criminal probe into Federal Reserve Chair Jerome Powell.

In an immediate reaction, Powell himself characterized the investigation as “unprecedented,” a term that underscores the extraordinary nature of such an inquiry into the head of the nation’s independent central bank.

This startling development comes notably after a period of intense public pressure and demands from then-President Donald Trump for the Federal Reserve to lower interest rates. Powell, during his tenure, consistently upheld the Fed’s independence, resisting political calls to adjust monetary policy, often citing the central bank’s dual mandate of maximum employment and price stability.

A criminal probe into a sitting Fed Chair is a monumental event, raising serious questions about the perceived independence of the Federal Reserve from political influence and the potential ramifications for economic policy and institutional norms. The implications for the Fed’s credibility, global financial markets, and the balance of power between the executive branch and independent economic institutions are profound and will undoubtedly be a subject of intense scrutiny in the coming days and weeks.

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