Le Monde: Trump backs down, charges against Federal Reserve Chair Jerome Powell dropped

Trump backs down, charges against Federal Reserve Chair Jerome Powell dropped — this is today’s top headline from Le Monde on U.S. domestic politics. The article states that although Trump was previously furious, he ultimately relented again. On April 24 (Friday), the U.S. Department of Justice announced the sudden termination of the investigation into Federal Reserve Chair Jerome Powell, paving the way for White House nominee Kevin Warsh to be confirmed by the Senate. Warsh is set to officially assume the role of Federal Reserve Chair in mid-May, at the end of Powell’s term.

Le Monde notes that, in reality, the Trump administration has become trapped in a deadlock it created itself, with no viable exit. Due to Republican Senator Thom Tillis of North Carolina insisting on preserving the independence of the Federal Reserve, Kevin Warsh’s nomination had been stalled for weeks during the Senate Banking Committee’s review process. Tillis, holding the decisive vote, vowed that he would not support Warsh as long as the investigation into Powell continued.

The so-called investigation, widely believed to be politically motivated, concerns cost overruns related to the renovation of the Federal Reserve’s historic building in Washington, D.C. Trump harbors deep resentment toward current Federal Reserve Chair Jerome Powell, who refused to comply with White House demands to lower key interest rates for financial institutions. Meanwhile, the Trump administration has increasingly used legal proceedings as a weapon of intimidation against anyone perceived as an opponent.

In this case, a federal judge dismissed in March the subpoena issued by U.S. Attorney Jeanine Pirro — a close ally of Trump — against Jerome Powell. The judge ruled there was no evidence of improper conduct by Powell, and that the primary purpose of the subpoena was to pressure the Federal Reserve.

On Monday, prosecutors dispatched personnel to conduct a surprise search at the Federal Reserve building site, signaling Jeanine Pirro’s firm stance. However, both the construction supervisor and the Fed’s legal team rejected the search request, citing the federal judge’s earlier ruling.

But on Friday, Jeanine Pirro posted on X: “I have instructed my office to conclude the investigation.” This is precisely what Senator Thom Tillis had hoped for.

Yet Pirro attempted to salvage her position. She stated she is awaiting the conclusions of a report commissioned by the Federal Reserve Inspector General, which “will help fully resolve the issues that led my office to issue the subpoenas.” She also warned: “If facts require it, I will not hesitate to restart the criminal investigation.”

With the investigation now concluded, Trump’s nominee Kevin Warsh should now receive full support from the Republican majority in the Senate to be confirmed as the new Federal Reserve Chair. This would avoid a period of unprecedented uncertainty: Powell has previously indicated that if his successor is not appointed by May 15 as required, he is prepared to serve as interim chair. That outcome would be unthinkable for Trump.

Nevertheless, this episode will leave a lasting mark. This marks the first time the U.S. Department of Justice has launched an investigation into a sitting Federal Reserve Chair. The independence of the Federal Reserve from the executive branch — meaning it can implement monetary policy without yielding to short-term White House political demands — is one of the cornerstones of the American financial system. For Powell’s successor, this is undoubtedly a warning.

Le Monde says the struggle is far from over. In addition to the potential resumption of the investigation into Jerome Powell, another Federal Reserve Board member, Lisa Cook, is currently facing legal action by the Department of Justice in a mortgage-related case. Trump had previously attempted to remove her from office and appoint a board member more aligned with his views. That decision has been temporarily halted by the courts, and the Supreme Court is expected to deliver a highly anticipated ruling on the boundaries of executive power in the United States.

Source: rfi

Original article: toutiao.com/article/1863397136922624/

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