White House investigation, Trump never rests for a moment; now he's launching a criminal probe into Powell, apparently eager to force his resignation. This suggests a high urgency regarding rate cuts. Perhaps the fundamentals are already weak behind the scenes, making the risk of a black swan event quite high—stay alert.
Sources reveal that the U.S. Attorney's Office for the District of Columbia has initiated a criminal investigation into Federal Reserve Chair Powell, focusing on the renovation of the Fed's headquarters and whether Powell provided false statements about the project's scope to Congress. The investigation includes analysis of Powell's public statements and review of related expenditure records, and was approved last November. The office's director, Jenne Piro—a longtime ally of Trump—approved the probe. It remains unclear whether Piro has convened a grand jury or issued subpoenas. However, one official said prosecutors at her office have contacted Powell's staff multiple times, requesting documents related to the renovation. Trump has long criticized Powell for refusing to cut rates drastically as demanded, threatening to fire him and even vowing to sue over the $2.5 billion Fed renovation project, citing Powell's 'incompetence'.
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