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Is the Federal Reserve's independence crisis coming? How Trump's power struggle with Powell is stirring up the crypto world
Things have been pretty crazy this week—The Trump administration issued criminal investigation subpoenas to the Federal Reserve, ostensibly over a $2.5 billion headquarters renovation project, but industry insiders see through it immediately: this is political pressure.
Powell responded directly on Sunday. He made it very clear that the renovation funds are for asbestos removal and replacing century-old systems, not an overrun scam. The real issue lies here—The Fed cut interest rates by a total of 75 basis points last year, and the current rate is 3.5%-3.75%, yet Trump still finds it insufficiently aggressive.
What’s even more painful is that Powell was personally appointed by Trump in 2017, and now he's being called a "fool."