Powell Faces DOJ Threat and Trump’s Renovation Critique President Trump has threatened criminal charges against Fed Chair Jerome Powell, linking the pressure to a dispute over the cost of a major Fed‑building renovation. The Justice Department served subpoenas to Powell, which he described as pretexts for the administration to seize control of rate‑setting authority. Powell’s public rebuke emphasized that such political maneuvers would undermine the Fed’s ability to act on data‑driven policy. [1][2]

International Central Bank Leaders Issue Unified Independence Statement Central bankers gathered in Frankfurt released a joint declaration praising Powell’s integrity and reaffirming that independence is essential for price, financial and economic stability. Signatories included the ECB, Bank of England and BIS chairs, while the Bank of Japan notably abstained. The statement framed independence as a safeguard against political interference and called for rule‑of‑law accountability. [1][2]

Political Pressure Shapes Expectations for Upcoming Rate Cuts Trump repeatedly urged the Fed to accelerate interest‑rate cuts, prompting economists to warn that a politicized policy could erode credibility and push investors to demand higher Treasury yields. Observers suggested the Fed might deliberately pause cuts longer than markets anticipate to preserve its autonomous image. The clash highlights the tension between presidential demands and the Fed’s dual mandate of maximum employment and price stability. [1][2]

Fed Boosts Transparency with Renovation FAQ and Reporter Tour In response to criticism, the Federal Reserve published a detailed FAQ outlining cost overruns and inter‑agency coordination for the renovation project. Reporters were given a guided tour of the construction site to illustrate the scope and expenses. The transparency effort was highlighted by CNN but not mentioned in the AP report, indicating a difference in coverage focus. [2]