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Trump–Powell Showdown Intensifies as White House Floats Criminal Charges

                                                       Donald Trump and Federal Reserve Chair Jerome Powell A dramatic escalation in the long‑running tension between President Donald Trump and Federal Reserve Chair Jerome Powell has thrust the independence of the U.S. central bank into the spotlight. The conflict deepened after Powell disclosed that the Department of Justice had issued grand jury subpoenas to the Federal Reserve—an action he suggested was politically motivated. The inquiry centers on Powell’s congressional testimony about cost overruns tied to a Federal Reserve building renovation. Powell has dismissed the investigation as a pretext, arguing that the administration’s real aim is to pressure the Fed into cutting interest rates more aggressively, a move Trump has repeatedly demanded. The threat of potential...
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Fed Turmoil Sends U.S. Futures Lower as DOJ Targets Powell

U.S. stock futures retreated as investors reacted to an unprecedented clash between the Federal Reserve and the Department of Justice. The downturn followed news that the DOJ has launched a criminal investigation involving Fed Chair Jerome Powell, injecting fresh uncertainty into financial markets already sensitive to policy signals.

Dow, S&P 500, and Nasdaq futures all slipped in early trading, reflecting a broad pullback from recent highs. Tech‑heavy Nasdaq futures led the decline as traders reassessed risk appetite.

The investigation centers on Powell’s testimony regarding renovations to Federal Reserve facilities. Powell has characterized the probe as politically motivated, suggesting it stems from tensions over the Fed’s resistance to political pressure on interest‑rate decisions.

The episode has raised renewed concerns about the independence of the central bank — a foundational element of market stability. Investors are now weighing whether the conflict could influence upcoming policy decisions or disrupt the Fed’s communication strategy.

Despite the immediate volatility, some analysts believe strong economic fundamentals may help markets stabilize once the political dust settles. For now, though, the Powell‑DOJ confrontation has added a new layer of uncertainty to the market outlook.


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