Chapter 1: What evidence is there for Trump's probe into Jerome Powell?
Well, howdy there, Internet people, it's Belle again. So today, we're going to talk about Trump's Powell probe lacking evidence. Trump has been trying desperately to force Federal Reserve Chair Jerome Powell out of his spot. Trump seems to wrongly believe that if Powell would lower interest rates faster, it would somehow fix his sagging economy.
Given that inflation is still creeping up, even with higher rates, it's pretty clear that Trump is wrong and has been wrong the entire time. But wrong or not, the Trump administration opened a probe into Powell, which wound up backfiring on Trump as members of the Senate have locked up his nominees until the probe is completed.
Chapter 2: How did Trump's actions impact the Federal Reserve's independence?
A couple of weeks ago, Judge James Boasberg, who is the chief judge on the U.S. District Court for Washington, D.C., quashed subpoenas related to the probe and wrote, quote, A mountain of evidence suggests that the government served these subpoenas on the board to pressure its chair into voting for lower interest rates or resigning.
On the other side of the scale, the government has produced essentially zero evidence to suspect Chair Powell of a crime.
Chapter 3: What did the court say about the legitimacy of the subpoenas?
Indeed, its justifications are so thin and unsubstantiated that the court can only conclude that they are pretextual. The court therefore finds that the subpoenas were issued for an improper purpose and will quash them. That was a pretty direct statement from a judge overseeing the proceedings, that this whole thing seems without merit.
At the time, we didn't really know why such a direct statement was made, but now we do. During a March 3rd hearing that was closed to the public, the judge asked what false statements Powell made before Congress.
Chapter 4: Why is the investigation into Powell considered lacking in substance?
Assistant U.S. Attorney Andrew Masuko said, Well, we don't know is my first answer. However, there are certain areas that he addressed that caused concern. The judge then asked, Okay, and then what evidence is there of fraud or criminal misconduct in relation to the renovations?
Chapter 5: What consequences did Trump's pressure on Powell have on the economy?
To which the DOJ attorney said, quote, Again, we do not know at this time. However, there are 1.2 billion reasons for us to look into it. The 1.2 billion is a reference to the cost overruns on the renovations of the Federal Reserve Building. If cost overruns alone were grounds for a criminal probe, I feel like pretty much everyone at the Pentagon would be under investigation.
The funny part is that Trump's constant pushing against the independence of the Federal Reserve may have actually led to the exact opposite of what he wanted. The public pressure created uncertainty in the markets and likely weakened the economy. Trying to push Powell appears to have made him stay longer, and that locked up his own nominee's movement in the Senate.
Now we found out the probe is mainly based on vibes. It's unlikely this is the end of the story. Anyway, it's just a thought. Y'all have a good day.