Trump-backed criminal probe of Fed chief Powell revives 1970s-style inflation and market concern

The Trump administration has intensified its confrontation with the Federal Reserve by supporting a criminal investigation into chair Jerome "Jay" Powell over a $2.5bn headquarters renovation, raising fears of political interference in U.S. monetary policy. Markets have so far remained stable as investors expect the Fed to resist demands for rapid rate cuts, while Republican lawmakers, global central bankers, and Wall Street figures rally in defence of the Fed's independence. The widening backlash is complicating Trump's plans to reshape the central bank as Powell's term as chair nears its end.