Trump attacks Powell again amid Fed independence fears: 'Incompetent' or 'crooked'

• Trump's comments came in response to questions about whether the DOJ's unprecedented criminal probe of Powell undermines confidence in the central bank
• The investigation represents an extraordinary challenge to the Fed's long-standing independence from executive branch interference
• The DOJ probe is facing growing opposition as concerns mount over potential political pressure on monetary policy decisions

Summary: Trump Attacks Fed Chair Powell Amid Independence Concerns

Key Development:

President Donald Trump escalated his criticism of Federal Reserve Chair Jerome Powell on Tuesday, labeling him either "incompetent" or "crooked." The verbal attack comes as the Department of Justice conducts an unprecedented criminal investigation into the Fed chair, raising serious concerns about central bank independence.

Main Figures:

• Donald Trump, U.S. President
• Jerome Powell, Federal Reserve Chair

Context:

Trump's latest remarks were made in response to questions about whether the DOJ's probe undermines confidence in the Federal Reserve. The central bank has historically operated independently from the executive branch, a principle considered fundamental to effective monetary policy and economic stability.

Market Implications:

This development threatens the long-standing independence of the Federal Reserve, potentially creating uncertainty in financial markets. The combination of presidential criticism and a criminal investigation into the Fed chair represents an extraordinary challenge to institutional norms. Such political pressure on the central bank could:

• Undermine investor confidence in monetary policy decisions
• Create volatility in equity and bond markets
• Raise questions about the Fed's ability to make objective interest rate decisions
• Potentially weaken the dollar if independence concerns persist

Significance:

The criminal investigation by the DOJ into Powell is described as "unprecedented," marking a dramatic departure from traditional separation between the executive branch and the Federal Reserve. This situation has generated "growing opposition" according to the report, suggesting broader concern among policymakers and market participants about threats to Fed independence.

The story is classified as breaking news, indicating ongoing developments that traders and investors should continue monitoring closely.