It’s baffling that the White House didn’t see this coming a mile away. For some reason, the government thought they could get away with attempting to file criminal charges against the sitting Federal Reserve Chairman, Jerome Powell.
Powell is a conservative Republican with a lot of power, especially in the markets. The administration did not seem to understand that tampering with Powell through a bogus investigation would lead to market instability and disruptions.
What the government really did not count on is the response from Republicans in Congress. The reaction is so intense that the White House panics.
The Justice Department’s criminal investigation into whether Fed Chairman Jerome Powell misled Congress about renovations at Fed headquarters — and allegations about who leaked the news — has put the White House into damage control mode. Officials are doing their best to reassure markets and create distance from an episode that aides say was never intended to unfold, according to five people familiar with the government’s response who were granted anonymity to discuss it.
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Privately, some White House officials view the episode as radioactive, with aides and allies eager to distance themselves from an investigation they believe could do more damage to the White House than to Powell. One of the five people familiar said some inside and near the White House are “panicking” that a further threat to the Fed chief’s job security could spook the bond market.
