Trump's Powell Investigation Backfires Fast
Disruption Banking • • business
Key Points:
- The Trump administration is in turmoil following the unexpected criminal investigation of Federal Reserve Chair Jerome Powell, initiated by Trump-appointed US Attorney Jeanine Pirro without informing key White House or Treasury officials.
- The investigation is widely criticized across the political spectrum as legally baseless and politically motivated retaliation, with legal experts and media outlets calling it a "grave tactical blunder" and "lawfare for dummies."
- Powell publicly denounced the charges as pretexts tied to the Fed's independent monetary policy decisions, emphasizing the importance of Fed independence for economic stability, a view echoed by all living former Fed chairs.
- Financial markets showed little reaction to the investigation news, with slight movements in the dollar and Treasury yields, while gold prices hit record highs
