Trump's pressure on U.S. institutions raises concerns for global economic stability

Federal Reserve Chair Jerome Powell criticized the Trump administration after the Justice Department threatened criminal charges tied to renovations of Fed offices, saying the move reflects broader pressure that could undermine the Fed's ability to set interest rates independently.

Federal Reserve Chair Jerome Powell publicly criticized the Trump administration following a Justice Department threat of criminal charges related to renovations of Federal Reserve office buildings. Powell framed the action as part of ongoing pressure from the president, including calls for lower interest rates. He said the core issue is whether the Fed can set monetary policy based on evidence and economic conditions without political influence. The article places these events in a historical context of presidential pressure on central banks and raises concerns about the consequences of weakened central bank independence. Key facts: - The Justice Department has threatened a criminal indictment connected to renovations of Federal Reserve office buildings, as reported in the article. - Fed Chair Jerome Powell delivered a public address stating the episode should be seen alongside sustained presidential pressure and that it raises questions about the Fed's ability to set interest rates independently. - The article references past instances of presidents pressuring the Fed and notes that loss of central bank independence can undermine confidence in a nation's financial system and currency, citing Argentina as an illustrative example. Summary: The article argues that political pressure on the Federal Reserve may have broader implications for confidence in financial institutions and currency stability. Undetermined at this time.