Overview
- President Trump said in Detroit that Jerome Powell "will be out soon" and signaled he wants a successor who aligns with his monetary views.
- Powell confirmed the Justice Department has opened a criminal investigation into alleged irregularities tied to the Fed’s headquarters renovation.
- Alan Greenspan, Ben Bernanke, Janet Yellen and other former officials called the probe an unprecedented use of legal attacks against the Fed’s independence.
- Powell defended the central bank’s independence, saying any rate cuts will follow economic evidence, and he has accused the president of pressuring him.
- Trump argues mortgage rates fell below 6% without Fed help, deems December’s rate cut insufficient, and urges reductions of up to three percentage points as Powell’s term ends in May.