Criminal Investigation into Fed Chair Powell Raises Concerns over Central Bank Independence

The Trump administration has launched a criminal investigation into Federal Reserve Chair Jerome Powell over his testimony about a costly renovation of the Fed's headquarters. Powell called the probe a political pretext aimed at pressuring the Fed to cut interest rates, raising concerns about the central bank's independence. The move drew bipartisan criticism, including from former Fed chairs and Republican senators, and prompted global central bankers to express solidarity with Powell. Markets reacted with volatility amid fears of political interference in monetary policy.