Powell Links DOJ Probe to Trump's Fed Rate Pressure, Stresses Central Bank Independence

Federal Reserve Chair Jerome Powell views the Department of Justice probe into his Senate testimony as a consequence of President Trump's anger over the Fed's interest rate decisions. Powell asserts that central bank independence is crucial for long-term financial stability and economic growth, allowing for a longer-term perspective than elected governments. While absolute independence is debated, statutory frameworks grant both the US Fed and RBI operational leeway, essential for preventing politically influenced decisions and maintaining price stability.