Trump Targets Fed Chair Powell: Criminal Probe Over Renovation, Interest Rate Battle Intensifies

• US President Donald Trump has initiated a formal criminal investigation into Federal Reserve Chairman Jerome Powell over alleged irregularities in a $2.5 billion renovation project.
• Powell claims the criminal probe is a "pretext" to pressure him into lowering interest rates for Trump's political gain, stating he refused White House demands.
• The dispute stems from Trump's repeated criticism of Powell for not cutting interest rates more aggressively, despite three rate cuts last year.
• Powell warns that bowing to political pressure for rate cuts would lead to uncontrollable inflation and argues for evidence-based monetary policy.
• Trump is also campaigning to remove Fed Governor Lisa Cook, and the Supreme Court will hear a case on presidential power to remove independent Fed governors.

Why It Matters: Trump escalates his feud with Fed Chair Powell, launching a criminal probe to force interest rate cuts.