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The U.S. Justice Department's top officials are reportedly throwing their support behind federal prosecutor Jeanine Pirro in a potential investigation targeting Federal Reserve Chair Jerome Powell, according to a Bloomberg News report published Thursday. The development marks a significant shift in the ongoing tension between the Trump administration and the nation's central bank.
Sources cited in the Bloomberg report indicate that the White House is not standing in the way of the proposed probe, signaling at least tacit approval from the administration. President Donald Trump, who had previously shown some willingness to walk back the investigation, is now believed to be in favor of pursuing an appeal after a federal judge struck down subpoenas that had been issued to the Federal Reserve last Friday.
The rejected subpoenas appear to have been a turning point. Aides and allies close to Trump suggest the court's decision reignited his interest in pushing forward, with an appeal now considered a likely next step. The potential investigation into Powell adds fresh tension to the already strained relationship between the executive branch and the independent monetary authority.
The Federal Reserve, which operates independently from the executive branch, has long been a subject of criticism from Trump, who has frequently pressured Powell over interest rate decisions. An investigation of this nature, if pursued, could raise serious questions about the boundaries of executive oversight over independent federal institutions.
Reuters stated it was unable to independently verify the Bloomberg report at the time of publication. As of now, no formal charges or official announcements have been made regarding the investigation.
This developing story continues to draw attention from financial markets, legal analysts, and political observers who are closely watching how the situation unfolds between the Justice Department, the White House, and the Federal Reserve.
