All articles tagged with #federal reserve system
Sen. Thom Tillis said the DOJ has ended its criminal probe into Federal Reserve Chair Jerome Powell, removing a key obstacle and allowing Republicans to push Kevin Warsh’s nomination to lead the Fed; a Senate Banking Committee vote on Warsh's confirmation is expected soon as the party seeks to move forward after the Powell investigation closed.
Prosecutors sought access to the Federal Reserve building amid a DOJ probe into a $2.5 billion Fed renovation, as President Donald Trump again threatens to fire Fed Chair Jerome Powell once his term as chair ends next month; Powell says he will remain as chair until a successor is confirmed and argues the investigation is a pretext to undermine Fed independence. The situation unfolds against broader debates about the Fed’s autonomy and comes as the Supreme Court weighs a separate case involving another central bank governor, Lisa Cook.
President Trump threatened to fire Federal Reserve Chair Jerome Powell if he doesn’t step down and refused to halt the Justice Department’s probe into the Fed’s $2.5 billion renovation, a move that tests the central bank’s independence and complicates Powell’s departure timeline and the nomination process for his replacement.
As Powell’s term as Fed chair expires on May 15, the Trump administration appears poised to challenge his plan to stay on as acting chair if Senate Republicans do not confirm Kevin Warsh, setting up a confrontation over who leads the Fed and potentially shaping its policy path depending on Warsh’s fate.
Jerome Powell said he would remain Fed chair past his term’s mid-May end if a successor hasn’t been confirmed by the Senate, and would stay on the Fed board until any criminal probe is resolved, effectively blocking President Trump’s efforts to force a leadership shakeup at the central bank.
New Commerce Department data trim Q4 2025 GDP growth to 0.7% annualized, far slower than the prior 1.4% advance estimate, while January inflation remains stubborn with core PCE at 3.1% and overall PCE near 2.8%, signaling persistent price pressures even as oil prices rise with the Iran conflict; the weaker momentum before the conflict complicates the Fed’s effort to cool inflation without tipping the economy into recession, and markets priced in potential rate cuts later in the year.
Inflation in February rose 2.4% year over year, the same pace as January, but the measure does not capture a coming surge in energy costs tied to the U.S.–Israel campaign against Iran; gasoline, airline and shipping costs are rising, placing pressure on the Fed and policymakers.
White House economic adviser Kevin Hassett criticized a Federal Reserve Bank of New York study that found U.S. companies bear most of the costs of tariffs, calling the research an embarrassment and urging the central bank to punish the researchers behind it.
Fallout from the Greenland crisis and Trump’s policy approach have contributed to a decline in the U.S. dollar, with the greenback down more than 10% since he returned to the White House; despite remaining a global reserve currency, foreign investors are rethinking exposure to the U.S. amid policy uncertainty and shifting financial markets.
President Donald Trump announced he would nominate Kevin Warsh, a former Fed governor and Wall Street veteran, to succeed Jerome Powell as Fed chair, a move that could shape monetary policy and align with the president’s calls for faster rate cuts.
The Federal Reserve kept rates unchanged at its first meeting of 2026 after three cuts late in 2025, signaling a patient stance as hiring slows but the broader economy remains resilient, while inflation’s trajectory will determine the next moves.
Treasury Secretary Scott Bessent shifts from his prior restraint to publicly criticizing Fed Chair Jerome Powell, signaling mounting political pressure on the Fed as Donald Trump weighs Powell’s successor and the direction of monetary policy.
The Supreme Court signaled it is unlikely to allow Trump to immediately fire Fed Governor Lisa Cook, keeping her on the Federal Reserve Board while a lawsuit challenges her removal and limiting presidential influence over the central bank.
The Washington Post frames the Supreme Court case over President Trump’s push to fire Fed governor Lisa Cook as a major legal issue, now intensified by news that Fed Chair Jerome Powell is under investigation, a combination that could affect the Court’s view of presidential power over the Fed and Powell’s political trajectory while potentially influencing monetary policy and inflation dynamics.
President Trump proposes a 10 percent cap on credit card interest rates, a move aimed at affordability that could lower borrowing costs for consumers but may restrict lenders’ ability to extend credit, prompting pushback from banks.