Fed Independence Under Strain as Trump Administration Probes Powell; U.S. Business Leaders Stay Publicly Silent

The Federal Reserve's independence faces intensified scrutiny after the Trump administration launched a criminal investigation into Chair Jerome Powell over the cost of renovating the Fed's headquarters, BlockBeats reports. Powell said the probe stems not from his testimony or the construction project itself, but from the Fed's refusal to align interest rate decisions with the president's preferences, calling it a threat to independent monetary policymaking. While the episode briefly unsettled markets, large corporations and CEOs have largely avoided public comment, though private surveys by Yale CEO Leadership Institute founder Jeffrey Sonnenfeld show 71% of CEOs believe the administration is eroding Fed independence and 80% view political pressure for rate cuts as contrary to U.S. interests. Analysts cited by BlockBeats say many executives fear political retaliation, some quietly lobby policymakers, and others are betting Trump may ultimately retreat from more aggressive moves.