The Trump administration’s criminal investigation of Federal Reserve Chair Jerome Powell sparked frustration among White House officials and allies, and threatened ramifications for markets and the government.
Treasury Secretary Scott Bessent reportedly told US President Donald Trump that the probe “made a mess,” and multiple Senate Republicans voiced displeasure: “We need this like we need a hole in the head,” one said.
A Commerzbank economist said the move could accelerate rate cuts, ING forecast risks for the dollar, and a leading central bank historian warned that the row was “bigger than the Fed.”
Powell was “being made an example of, so that everybody else… can see what could happen to you if you defy the administration,” he said.