Powell Probe Roils White House and Fed Leadership Outlook

White House officials blame U.S. Attorney Jeanine Pirro for blindsiding the administration with a criminal probe into Federal Reserve Chair Jerome Powell, triggering a damage-control push as markets react and lawmakers weigh Powell’s future and the timing of a replacement. Powell confirmed subpoenas and described the inquiry as an attempt by Trump to pressure him to lower rates, prompting scrutiny from Republican senators like Thom Tillis. Trump publicly downplayed knowledge of the probe while aides argued Pirro disrupted months of efforts to dampen attacks on Powell; the investigation began in November and escalated after December emails and a subpoena. The episode could complicate Trump’s plan to appoint a more pliant Fed chair and may affect Powell’s own tenure, with bipartisan support rallying around Powell in response to what some see as an overreach into the Fed’s independence.