US Fed Chair Powell Under Criminal Inquiry: Markets Jitter, Political Interference Feared

• A criminal inquiry into US Federal Reserve Chair Jerome H Powell by the Justice Department has alarmed legal, economic, and political circles.
• The investigation comes amid repeated demands from Donald Trump for interest rate cuts, which Powell has resisted to maintain monetary policy independence.
• The inquiry stems from cost overruns in the renovation of the Fed's Washington headquarters, though legal experts question the criminal nature of such issues.
• Critics suggest the probe is politically motivated, aimed at pressuring Powell to align with presidential preferences on interest rates.
• Markets reacted sharply, fearing political interference could destabilize interest-rate setting and undermine the Fed's crucial independence.

Why It Matters: Criminal inquiry into Fed Chair Powell sparks fears of political interference, threatening central bank independence and market stability.