Trump admin's criminal probe into Fed Chair raises fears about central bank independence and potential for inflation

Core Viewpoint - The ongoing conflict between President Trump and Federal Reserve Chairman Jerome Powell raises significant concerns about the independence of the Federal Reserve and its implications for the U.S. economy and financial security of Americans [1][3]. Group 1: Federal Reserve Independence - Powell revealed that the U.S. Department of Justice threatened him with a criminal indictment related to his testimony about Federal Reserve building renovations, which have exceeded the budget by $700 million [2]. - Powell argues that the indictment threat and accusations of incompetence are pretexts for political pressure, emphasizing the importance of the Federal Reserve's ability to set interest rates based on economic data rather than political influence [3][4]. - The situation has prompted bipartisan condemnation from U.S. Senators, with Democratic and Republican leaders defending Powell and the independence of the Federal Reserve [5]. Group 2: Economic Impact - Following the news of the potential indictment, the dollar weakened and stock futures declined, indicating immediate market reactions to the political turmoil surrounding the Federal Reserve [4]. - The conflict highlights the broader implications for monetary policy and its direction, which could affect economic stability and public trust in financial institutions [3][4].