The news broke that Trump is escalating his underhanded attacks on the Federal Reserve:
NYT: Federal prosecutors open probe into Fed chair Powell amid renovation scrutiny
Summary:
NYT reports federal prosecutors have opened a probe involving Fed Chair Powell
Specific allegations and scope are unclear from the headline alone
Context includes intense political attacks over Fed HQ renovation costs
Powell previously requested an inspector general review of the project
Any escalation could raise Fed-independence risk premia into the 2026 chair transition
Fed Chair Powell
Fed Chair Powell calls out Trump on his witch hunt, part of ongoing threats against Bank
Summary
Powell says DOJ threatened criminal indictment
Grand jury subpoenas served on Friday
Issue linked to Senate testimony on Fed renovation
Powell calls move unprecedented and political
Raises concerns over Fed independence
Federal Reserve Chair Jerome Powell says Trump’s Department of Justice has subpoenaed the central bank. In a statement: "No one, certainly not the chair of the Federal Reserve,is above the law," Powell said. "But this unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure."
In the back half of last week Trump ramped up the populist policy setting ina a bid to ramp stocks higher in this election year:
- ordering “his representatives” to buy mortgage bonds to push borrowing costs lower,
- banning institutional investors from buying single-family homes.
- Trump floats one-year 10% credit-card rate cap, offers zero enforcement detail, just talk
His latest baloney attacking the Fed threatens to undo the gains, Trump cannot seem to undestand that attacks on Fed independence do not play well with those managing stock market funds.
Running to gold and silver instead.
EURO, too, is higher. The USD is lower across the majors board.
Australian dollar, UK GBP, New Zealand dollar, Swissy ... even the hapless yen is gaining!!!
