The most spectacular Fed-related development since the December vote has been Jay Powell’s decision criticise the Trump administration’s attempts to undermine the central bank’s independence.
Powell revealed this month that he had received grand jury subpoenas from the Department of Justice demanding more information on the Fed’s $2.5bn renovation of its headquarters, with the US president’s allies claiming he misled Congress over changes to the project.
The Fed chair, who has repeatedly denied the claims, described the DoJ probe as a “pretext” for the administration to force the US central bank to slash interest rates — a move that Donald Trump has spent much of his second term demanding.
Powell’s defence sparked a broader backlash against the White House, with a handful of Republican senators, led by North Carolina’s Thom Tillis, saying they would block Trump’s pick for Fed chair until the probe was dropped.