America’s Department of Justice dropped its criminal probe into Jerome Powell. Instead, the Fed’s inspector general will conduct an internal investigation, though prosecutors say the case could be revived. The move eases pressure on Powell as his term nears its May expiry and the Senate weighs Donald Trump’s nominee, Kevin Warsh, to succeed him. The investigation had become entangled in Republican politics, with Senator Thom Tillis withholding support for Warsh unless the probe was dropped. The episode highlights a long-running feud between Trump and Powell over interest rates and raises fresh concerns about political pressure on central bank independence.
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Any thoughts on whether the pivot to an internal inspector general probe has teeth? Or is it actually just a way for the admin to save face? Either way, glad to see some results from Powell’s willingness to fight.
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America’s Department of Justice dropped its criminal probe into Jerome Powell. Instead, the Fed’s inspector general will conduct an internal investigation, though prosecutors say the case could be revived. The move eases pressure on Powell as his term nears its May expiry and the Senate weighs Donald Trump’s nominee, Kevin Warsh, to succeed him. The investigation had become entangled in Republican politics, with Senator Thom Tillis withholding support for Warsh unless the probe was dropped. The episode highlights a long-running feud between Trump and Powell over interest rates and raises fresh concerns about political pressure on central bank independence.
Any thoughts on whether the pivot to an internal inspector general probe has teeth? Or is it actually just a way for the admin to save face? Either way, glad to see some results from Powell’s willingness to fight.
WE ARE JEROME POWELL
Teflon