Powell Defies Trump, Stays at Fed Amid Probe

This declaration underscores the failure of President Trump's year-long campaign to oust Powell and replace him with a more politically aligned figure. Powell also indicated he might continue as a powerful Fed governor until 2028, even if a successor chair is confirmed, further solidifying the institution's independence. The DOJ probe, which Powell labeled an "intimidation" tactic, was recently blocked by a federal judge who found "essentially zero evidence" to support the subpoenas.

Despite this, the U.S. attorney's office has appealed the ruling, signaling continued political pressure. Senator Thom Tillis has notably opposed the probe and is holding up the confirmation of Trump's preferred nominee, Kevin Warsh.

Amidst this political backdrop, the Fed's Open Market Committee voted 11-1 to hold interest rates steady, with only Trump's nominee, Stephen Miran, dissenting for a rate cut. This outcome reinforces the Fed's commitment to independent monetary policy despite external pressures.