As the Trump-Fed Battle Heats Up, Some Experts Worry About What Could Be Next

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which influence interest rates across the economy, to soar.President Donald Trump has long complained that interest rates are too high. Experts say his pressure campaign against the Federal Reserve isn't helping him.While Trump and Powell have have a bumpy public relationship, this weekend's affairs—Fed Chair Jerome Powell said the Justice Department had opened a criminal investigation into whether he lied to Congress while testifying last year on the costs of renovating Federal Reserve headquarters—marked an escalation. Powell called the investigation politically motivated and “a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.”The administration has sought to pressure the Fed, which operates independently of the White House, to aggressively lower interest rates. Policymakers gradually cut rates last year to support a weakening labor market, but have rebuffed calls to move faster, worried it might fuel inflation. Most Fed watchers expect some cuts this year, though not as many as Trump might prefer.Market measures of inflation expectations inched higher this week, but didn’t jump, suggesting investors don’t see the investigation having a major effect on rates. That cool has alarmed some observers: Former Fed Chair and Treasury Secretary Janet Yellen on Monday morning told CNBC she was "surprised the market isn’t more concerned."The Federal Reserve's independence from political pressure is widely seen as essential for sound monetary policy, which sometimes requires policymakers to make painful decisions for the sake of long-term stability. President Trump's effort to bring the central bank under his control risks undermining confidence in U.S. policy, some experts say.Meanwhile, the outcome of the probe remains an open question, with several experts wondering if it might have an effect opposite to what Trump would likely prefer.“The criminal investigation into Federal Reserve Chair Jerome Powell is unlikely to influence the path for monetary policy, and could even backfire by making officials more reluctant to cut rates in the coming months and years,” wrote Bernard Yaros, lead U.S. economist at Oxford Economics, on Monday.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,940.01 -4.46 (-0.06%)Dow 3049,359.33 -83.11 (-0.17%)Nasdaq23,515.39 -14.63 (-0.06%)Russell 20002,677.74 +3.18 (+0.12%)VIX15.86 +0.02 (+0.13%)Gold4,601.10 -22.60 (-0.49%)Trending tickersSMCI Super Micro Computer, Inc. 32.64 +3.22 (+10.94%)BTC-USD Bitcoin USD 95,424.32 -269.59 (-0.28%)NVO Novo Nordisk A/S 62.33 +5.21 (+9.12%)APP AppLovin Corporation 568.76 -38.23 (-6.30%)VERO Venus Concept Inc. 8.00 +6.56 (+455.56%)PortfolioSign in to access your portfolioSign inTop gainersIBRX ImmunityBio, Inc. 5.52 +1.57 (+39.75%)AGX Argan, Inc. 383.66 +54.00 (+16.38%)RIOT Riot Platforms, Inc. 19.24 +2.67 (+16.11%)ASTS AST SpaceMobile, Inc. 115.77 +14.52 (+14.34%)FIGR Figure Technology Solutions, Inc. 73.91 +9.00 (+13.86%)Top losersZGN Ermenegildo Zegna N.V. 9.56 -1.46 (-13.25%)SSL Sasol Limited 6.31 -0.84 (-11.75%)TLN Talen Energy Corporation 371.66 -47.41 (-11.31%)CEG Constellation Energy Corporation 307.71 -33.43 (-9.80%)GTM ZoomInfo Technologies Inc. 9.04 -0.97 (-9.65%)Most activeIBRX ImmunityBio, Inc. 5.52 +1.57 (+39.75%)ONDS Ondas Holdings Inc. 12.16 -0.66 (-5.15%)NVDA NVIDIA Corporation 186.23 -0.76 (-0.41%)INTC Intel Corporation 46.96 -1.35 (-2.78%)BBAI BigBear.ai Holdings, Inc. 6.12 -0.05 (-0.81%)Top economic eventsEarnings eventsMy earnings eventsEarnings events