U.S. Federal Reserve faces pressure as Trump seeks influence.

The Federal Reserve is expected to hold rates while its chair, Jerome Powell, is under a Department of Justice criminal investigation. Powell's chair term expires in May 2026 and he could remain as a Fed governor until 2028.

The Federal Reserve is expected to hold interest rates at its upcoming decision while its chair faces a criminal probe. The Department of Justice has opened an investigation into Jerome Powell over whether he misled Congress about renovation cost overruns for a Fed headquarters project. This development occurs amid public pressure from President Donald Trump and recent nominations to the Fed's governing body. Markets have registered notable moves, including higher gold prices and a weaker U.S. dollar. Situation details: - The Fed is widely expected to stand pat at its next rate decision. - The Department of Justice is conducting a criminal investigation into Fed Chair Jerome Powell related to his June 2025 congressional testimony. - Powell’s term as Fed chair expires in May 2026; he could remain as a Fed governor until his 14-year term ends in 2028. - Markets have reacted over the past year with an about 80% rise in gold prices and roughly a 10% depreciation of the U.S. dollar, as reported in the article. Summary: The reported investigation and political pressure have coincided with measurable market moves. The Fed will make its rate decision as scheduled, Powell’s chair term officially ends in May 2026, and the broader procedural and legal outcomes are undetermined at this time.