Jerome Powell faces scrutiny after being referred for a criminal investigation due to claims he provided false testimony about renovation costs. Representative Anna Paulina Luna alleged that he misrepresented these costs, leading to significant discrepancies in official statements.
The situation adds pressure on the Federal Reserve to consider interest rate cuts in September, with markets sensing a 56.1% chance of easing. Powell’s legal troubles have intensified discussions surrounding monetary policy amid external pressures from former President Trump.
Tensions are rising between Powell and Trump, who has criticized Powell’s handling of interest rates. Although no charges have been filed yet, Powell could face serious penalties if found guilty of perjury.
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