Reliable sources indicate that the decision by the Trump administration to issue a subpoena to the Federal Reserve was driven by the US Federal Housing Finance Director. This move has raised concerns among some allies who fear potential disruptions to the bond market and implications for the future of Federal Reserve Chair Jerome Powell.
Background of the Incident
Some of Trump's senior advisors reportedly learned about the subpoena only on Friday evening when Powell received it. Powell could remain a Fed governor until 2028, but he has not yet confirmed whether he will follow tradition and step down.
- The role of the Federal Housing Finance Director in advancing this action is drawing attention.
- Some allies are worried about potential market instability.
- Powell’s plans after his term remain uncertain.