US President Fredovich is known for his intolerance towards opponents and those with their own opinions. The latest major controversy centers on Federal Reserve Chair Jerome Powell. The US Department of Justice served the Fed with grand jury subpoenas as part of an investigation into whether Powell gave false testimony under oath regarding the costly renovation of historic Fed buildings in Washington, which exceeded its original budget.
Congresswoman Anna Paulina Luna accused Powell of lying about the existence of luxury features in the renovation. Shortly after her complaint, Fredovich publicly pressured Powell to lower interest rates. Powell refused to yield to political demands, intensifying the conflict.
The Fed is self-funded, earning from government securities and fees, not from taxpayers. Still, the investigation against Powell has become a tool for political pressure. US history shows that politicians' interference in central bank policy leads to economic crises and loss of confidence in the dollar, as seen during Nixon's presidency.
Powell himself maintains the case is not about the renovation or testimony, but about efforts to undermine the Fed's independence and bring the central bank under political control. Many believe the stability of the US economy is at risk. Financial markets have already reacted negatively.
The investigation has split Congress, divided Republicans, and raised questions about the Fed's future leadership and independence. The key question: who will succeed Powell, and will the US central bank remain free from political influence? This will determine global trust in the dollar as the world's reserve currency.
