The Department of Justice is currently investigating Federal Reserve Chair Jerome Powell for alleged misconduct connected to his testimony before Congress regarding the costly renovations of the Fed's headquarters. The investigation raises significant questions about the Fed's legal standing and future under political pressure.
• Cost Overrun: The renovation project for the 276,000 square foot Fed building has increased from an estimated $2 billion to $2.5 billion, comparable to the cost of building a new NFL stadium.
• Allegations of Perjury: Powell testified that the renovation would not include luxurious additions, yet these features are reportedly included in the project, leading to claims that he lied under oath.
• Political Dynamics: The investigation seems to stem from tensions between the Trump administration and the Fed, especially regarding interest rate policies.
• Implications for Lisa Cook: Fed President Lisa Cook has faced scrutiny for committing mortgage fraud yet has not resigned after being fired by Trump.
• Future of the Fed: If Powell is indicted or removed, it could lead to significant market instability due to uncertainty regarding the Fed's independence.
• Potential Changes: Trump’s administration has already influenced Fed appointments, which could lead to aggressive monetary policy changes if he gains further control.
The unfolding political situation surrounding the Federal Reserve could lead to major shifts in U. S. monetary policy, with potential consequences for investors. A Trump-controlled Fed may pursue drastic easing measures, which could significantly affect the value of the U. S. dollar and overall market dynamics. Investors are encouraged to prepare for these changes.
https://www.zerohedge.com/news/2026-01-25/dark-truth-about-trumps-attack-fed
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