The US Justice Department has ended its probe into Federal Reserve chair Jerome Powell, clearing a major roadblock to the confirmation of his successor Kevin Warsh. US Attorney for the District of Columbia Jeannine Pirro said on Friday that her office was ending its probe into the Fed’s extensive building renovations because the Fed’s inspector general would scrutinise them instead.&nbsp;Pirro wrote on X that the Fed’s inspector general has instead been asked to look into potential cost overruns in the central bank's renovation of its Washington, D.C., headquarters.&nbsp;“Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry,” she wrote.&nbsp;Also Read: <a href="https://www.wionews.com/india-news/rbi-cancels-licence-of-paytm-payments-bank-to-seek-winding-up-in-court-1777048619815">RBI cancels licence of Paytm Payments Bank, to seek its winding up in court</a>&nbsp;<h2>Move could lead to swift confirmation by Senate for Kevin Warsh</h2>&nbsp;The move could lead to a swift confirmation vote by the Senate for Warsh, a former top Fed official whom President Donald Trump, a Republican, nominated in January to replace Powell. Powell’s term as chair ends May 15.&nbsp;Sen. Thom Tillis, a North Carolina Republican, had said he would oppose Warsh until the investigation was resolved, effectively blocking his confirmation.Republicans praised Warsh during a Tuesday hearing, but Democrats questioned his independence from Trump, the lack of transparency around some of his financial holdings, and his flip-flop on interest rates.&nbsp;&nbsp;Also Read: <a href="https://www.wionews.com/world/us-blockade-of-iranian-vessels-to-continue-for-as-long-as-it-takes-defence-secretary-pete-hegseth-1777040971899">US blockade of Iranian vessels to continue for ‘as long as it takes’: Defence Secretary Pete Hegseth</a>&nbsp;The investigation was among several undertaken by the Justice Department against Trump’s perceived adversaries. It had failed to gain traction for months as prosecutors struggled to articulate a basis to suspect criminal conduct.&nbsp;A prosecutor handling the case conceded at a closed-door court hearing last month that the government hadn’t found any evidence of a crime. Consequently, a judge quashed the subpoenas issued to the Federal Reserve.&nbsp;&nbsp;Also Read: <a href="https://www.wionews.com/world/iran-cleric-wants-trump-to-apologise-over-ali-khamenei-killing-admit-mistake-before-world-1777036677663">Iran cleric wants Trump to apologise over Ali Khamenei killing, admit ‘mistake’ before world</a><h2>‘Prosecutors produced essentially zero evidence to suspect Powell of crime’</h2>&nbsp;The judge, James Boasberg, said prosecutors had produced “essentially zero evidence” to suspect Powell of a crime.&nbsp;&nbsp;Warsh said during the Senate hearing earlier this week that he never promised the White House that he would cut interest rates, even as the president renewed his calls for the central bank to do so.&nbsp;Also Read: <a href="https://www.wionews.com/india-news/raghav-chadha-2-other-mps-quit-aam-aadmi-party-announce-split-with-2-3rd-mps-to-join-bjp-1777026936391">Raghav Chadha, 2 other MPs quit Aam Aadmi Party, announce split with 2/3rd MPs joining BJP</a>&nbsp;“The president never once asked me to commit to any particular interest rate decision, period,” Kevin Warsh, a former top Fed official, said during questioning by the Senate Banking Committee. “Nor would I ever agree to do so if he had. ... I will be an independent actor if confirmed as chair of the Federal Reserve.”&nbsp;The decision to abandon the investigation represents a rare pullback for a Justice Department that over the last year has moved aggressively, albeit unsuccessfully, to prosecute public figures the president does not like.

The investigation against Federal Reserve chair Jerome Powell was among several undertaken by the Justice Department against Trump’s perceived adversaries. It had failed to gain traction for months as prosecutors struggled to articulate a basis to suspect criminal conduct.

The US Justice Department has ended its probe into Federal Reserve chair Jerome Powell, clearing a major roadblock to the confirmation of his successor Kevin Warsh. US Attorney for the District of Columbia Jeannine Pirro said on Friday that her office was ending its probe into the Fed’s extensive building renovations because the Fed’s inspector general would scrutinise them instead. Pirro wrote on X that the Fed’s inspector general has instead been asked to look into potential cost overruns in the central bank's renovation of its Washington, D.C., headquarters. “Accordingly, I have directed my office to close our investigation as the IG undertakes this inquiry,” she wrote. Also Read: RBI cancels licence of Paytm Payments Bank, to seek its winding up in court Move could lead to swift confirmation by Senate for Kevin Warsh The move could lead to a swift confirmation vote by the Senate for Warsh, a former top Fed official whom President Donald Trump, a Republican, nominated in January to replace Powell. Powell’s term as chair ends May 15. Sen. Thom Tillis, a North Carolina Republican, had said he would oppose Warsh until the investigation was resolved, effectively blocking his confirmation. Republicans praised Warsh during a Tuesday hearing, but Democrats questioned his independence from Trump, the lack of transparency around some of his financial holdings, and his flip-flop on interest rates. Also Read: US blockade of Iranian vessels to continue for ‘as long as it takes’: Defence Secretary Pete Hegseth The investigation was among several undertaken by the Justice Department against Trump’s perceived adversaries. It had failed to gain traction for months as prosecutors struggled to articulate a basis to suspect criminal conduct. A prosecutor handling the case conceded at a closed-door court hearing last month that the government hadn’t found any evidence of a crime. Consequently, a judge quashed the subpoenas issued to the Federal Reserve. Also Read: Iran cleric wants Trump to apologise over Ali Khamenei killing, admit ‘mistake’ before world ‘Prosecutors produced essentially zero evidence to suspect Powell of crime’ The judge, James Boasberg, said prosecutors had produced “essentially zero evidence” to suspect Powell of a crime. Warsh said during the Senate hearing earlier this week that he never promised the White House that he would cut interest rates, even as the president renewed his calls for the central bank to do so. Also Read: Raghav Chadha, 2 other MPs quit Aam Aadmi Party, announce split with 2/3rd MPs joining BJP “The president never once asked me to commit to any particular interest rate decision, period,” Kevin Warsh, a former top Fed official, said during questioning by the Senate Banking Committee. “Nor would I ever agree to do so if he had. ... I will be an independent actor if confirmed as chair of the Federal Reserve.” The decision to abandon the investigation represents a rare pullback for a Justice Department that over the last year has moved aggressively, albeit unsuccessfully, to prosecute public figures the president does not like.

The investigation against Federal Reserve chair Jerome Powell was among several undertaken by the Justice Department against Trump’s perceived adversaries. It had failed to gain traction for months as prosecutors struggled to articulate a basis to suspect criminal conduct.

Justice Department drops criminal probe of Fed chair Jerome Powell, likely paving the way for Kevin Warsh

President Donald Trump claimed that the US economic growth is at an all-time high and investment is booming, as he has defeated inflation, adding that his tariff policies have brought hundreds of billions of dollars into the US from foreign countries. The US president is in Michigan to promote his efforts to support manufacturing in the country, while trying to calm worries over the weakening job market.&nbsp;"Growth is exploding, productivity is soaring, investment is booming, incomes are rising", and that "inflation is defeated," he said during his speech at the Detroit Economic Club."One of the biggest reasons for this unbelievable success has been our historic use of tariffs. It was the tariff that made America strong and powerful in past generations," he added.&nbsp;He further boasted that growth is at an all-time high, and about new highs in the stock market, while blaming the Fed Chair Jerome Powell for keeping the interest rates high. "Today, if you announce great numbers, they raise interest rates to try and kill it, so you can never really have the kind of rally you should have," he said. Trump suggested that he wants someone to lead the Fed, "when the market is doing great, interest rates can go down".&nbsp;The POTUS declared that the US economy is going to grow rapidly, "we're going to have a lot of great months, a lot of great quarters", and added that he wants the market "to go up."<h2>The trade deal with Canada and Mexico is irrelevant</h2>Donald Trump declared that America does not need the USMCA trilateral deal, which enables business between North America's three biggest economies: the United States, Mexico and Canada. He added that he wants to encourage manufacturing in the US, not Canada.&nbsp;Also Read: <a href="https://www.wionews.com/world/secret-meeting-did-us-envoy-steve-witkoff-meet-exiled-crown-prince-reza-pahlavi-as-protests-in-iran-escalates-1768330093737">Secret meeting? Did US Envoy Steve Witkoff meet exiled crown prince Reza Pahlavi as protests in Iran escalates?</a>&nbsp;"There's no real advantage to it, it's irrelevant," he said, adding he wanted to build cars "here, not in Canada." Trump blamed the Biden administration for the decline in manufacturing and asserted that, currently, under him, "we have more plants being built in our country than in any time in history!"&nbsp;Trump made these remarks during a visit to the Ford Production facility in Dearborn, Michigan, ahead of his address on the US economy in Detroit.&nbsp;

The POTUS declared that the US economy is going to grow rapidly, "we're going to have a lot of great months, a lot of great quarters", and added that he wants the market "to go up."

President Donald Trump claimed that the US economic growth is at an all-time high and investment is booming, as he has defeated inflation, adding that his tariff policies have brought hundreds of billions of dollars into the US from foreign countries. The US president is in Michigan to promote his efforts to support manufacturing in the country, while trying to calm worries over the weakening job market. "Growth is exploding, productivity is soaring, investment is booming, incomes are rising", and that "inflation is defeated," he said during his speech at the Detroit Economic Club. "One of the biggest reasons for this unbelievable success has been our historic use of tariffs. It was the tariff that made America strong and powerful in past generations," he added. He further boasted that growth is at an all-time high, and about new highs in the stock market, while blaming the Fed Chair Jerome Powell for keeping the interest rates high. "Today, if you announce great numbers, they raise interest rates to try and kill it, so you can never really have the kind of rally you should have," he said. Trump suggested that he wants someone to lead the Fed, "when the market is doing great, interest rates can go down". The POTUS declared that the US economy is going to grow rapidly, "we're going to have a lot of great months, a lot of great quarters", and added that he wants the market "to go up." The trade deal with Canada and Mexico is irrelevant Donald Trump declared that America does not need the USMCA trilateral deal, which enables business between North America's three biggest economies: the United States, Mexico and Canada. He added that he wants to encourage manufacturing in the US, not Canada. Also Read: Secret meeting? Did US Envoy Steve Witkoff meet exiled crown prince Reza Pahlavi as protests in Iran escalates? "There's no real advantage to it, it's irrelevant," he said, adding he wanted to build cars "here, not in Canada." Trump blamed the Biden administration for the decline in manufacturing and asserted that, currently, under him, "we have more plants being built in our country than in any time in history!" Trump made these remarks during a visit to the Ford Production facility in Dearborn, Michigan, ahead of his address on the US economy in Detroit.

The POTUS declared that the US economy is going to grow rapidly, "we're going to have a lot of great months, a lot of great quarters", and added that he wants the market "to go up."

US growth is exploding, inflation is defeated: Trump calls trade deal with Canada, Mexico ‘irrelevant’

The Federal Reserve on Wednesday cut its benchmark interest rate by a quarter-point for the second time this year, a step that could bring some financial relief to consumers and businesses but also runs some risk as inflation has been creeping up. The central bank said in a statement while making the rate-cut announcement that though the economic activity has been expanding, jobs growth had slowed and inflation had gone up. &nbsp;The rate cut will reduce the cost of borrowing in the economy and will have immediate effects on auto loans and credit cards and even though mortgage rates are not directly tied to the benchmark rate, they often move in parallel.&nbsp;Also Read: <a href="https://www.wionews.com/world/nvidia-scripts-history-becomes-first-firm-to-reach-5-trillion-market-value-following-ai-boom-1761748694795">Riding on AI boom, Nvidia scripts history, becomes first firm to reach $5 trillion market value</a>&nbsp;Fed Chair Jerome Powell cautioned in a press conference that the government shutdown, which started Oct. 1, would weigh on economic activity as it drags on but added that those effects would reverse once it ends.&nbsp;Deadlines for funding food assistance and salaries for federal workers, including air-traffic controllers and TSA agents, are set to hit this week, while Congress remains in a stalemate.&nbsp;Also Read: <a href="https://www.wionews.com/world/-will-push-them-back-into-caves-tails-between-their-legs-pak-minister-says-will-obliterate-afghan-taliban-1761741971619">Will push them back into caves…tails between their legs’: Pak minister says will ‘obliterate’ Afghan Taliban</a>&nbsp;The rate cut comes as the US economy is grappling with a slowing labour market and stubborn price growth. Several major companies have announced thousands of job cuts, while many government workers remain furloughed due to shutdown. As per federal data, price growth in September was at its highest point since January.The Fed’s next rate decision is scheduled for Dec. 10. Powell said that there were “strongly differing views” about what the Fed should do at its next meeting.&nbsp;Also Read: <a href="https://www.wionews.com/world/pak-defence-minister-khawaja-asif-admits-country-s-past-role-in-supporting-afghanistan-taliban-1761755033225">Pak Defence Minister Khawaja Asif admits country’s past role in supporting Afghanistan Taliban</a>&nbsp;“Policy is not on a preset course,” Powell said.Usually, when the labour market slows down, lower rates spur economic activity, and during rising inflation, the Fed hikes rates to curb rising prices. The Fed faces a dilemma currently when data simultaneously shows a weakening employment and price rise.Lower interest rates sometimes worsen inflation by increasing overall economic activity.&nbsp;Jobs data suggests the US is experiencing one of the weakest labour markets of the 21st century. Stocks were moderately higher after the announcement Wednesday.&nbsp;WATCH: Strategic Shift By Trump Administration Rattles European Allies<a href="https://www.wionews.com/videos/strategic-shift-by-trump-administration-rattles-european-allies-1761764882579/embed">https://www.wionews.com/videos/strategic-shift-by-trump-administration-rattles-european-allies-1761764882579/embed</a>&nbsp;&nbsp;

Usually, when the labour market slows down, lower rates spur economic activity, and during rising inflation, the Fed hikes rates to curb rising prices. The Fed faces a dilemma currently when data simultaneously shows a weakening employment and price rise.

The Federal Reserve on Wednesday cut its benchmark interest rate by a quarter-point for the second time this year, a step that could bring some financial relief to consumers and businesses but also runs some risk as inflation has been creeping up. The central bank said in a statement while making the rate-cut announcement that though the economic activity has been expanding, jobs growth had slowed and inflation had gone up. The rate cut will reduce the cost of borrowing in the economy and will have immediate effects on auto loans and credit cards and even though mortgage rates are not directly tied to the benchmark rate, they often move in parallel. Also Read: Riding on AI boom, Nvidia scripts history, becomes first firm to reach $5 trillion market value Fed Chair Jerome Powell cautioned in a press conference that the government shutdown, which started Oct. 1, would weigh on economic activity as it drags on but added that those effects would reverse once it ends. Deadlines for funding food assistance and salaries for federal workers, including air-traffic controllers and TSA agents, are set to hit this week, while Congress remains in a stalemate. Also Read: Will push them back into caves…tails between their legs’: Pak minister says will ‘obliterate’ Afghan Taliban The rate cut comes as the US economy is grappling with a slowing labour market and stubborn price growth. Several major companies have announced thousands of job cuts, while many government workers remain furloughed due to shutdown. As per federal data, price growth in September was at its highest point since January. The Fed’s next rate decision is scheduled for Dec. 10. Powell said that there were “strongly differing views” about what the Fed should do at its next meeting. Also Read: Pak Defence Minister Khawaja Asif admits country’s past role in supporting Afghanistan Taliban “Policy is not on a preset course,” Powell said. Usually, when the labour market slows down, lower rates spur economic activity, and during rising inflation, the Fed hikes rates to curb rising prices. The Fed faces a dilemma currently when data simultaneously shows a weakening employment and price rise. Lower interest rates sometimes worsen inflation by increasing overall economic activity. Jobs data suggests the US is experiencing one of the weakest labour markets of the 21st century. Stocks were moderately higher after the announcement Wednesday. WATCH: Strategic Shift By Trump Administration Rattles European Allies https://www.wionews.com/videos/strategic-shift-by-trump-administration-rattles-european-allies-1761764882579/embed

Usually, when the labour market slows down, lower rates spur economic activity, and during rising inflation, the Fed hikes rates to curb rising prices. The Fed faces a dilemma currently when data simultaneously shows a weakening employment and price rise.

Federal Reserve cuts key rate for the second time amid hiring slowdown, rising prices and shutdown

US consumer prices climbed in August to their fastest pace since January, government data showed on Thursday (September 11), even as analysts believe the Federal Reserve will press ahead with an interest rate cut next week. The rise highlights growing cost-of-living pressures on households as President Donald Trump’s tariffs ripple through the economy, complicating the Fed’s goal of keeping prices stable.&nbsp;The Labour Department reported that the consumer price index (CPI) rose 2.9% in August from a year earlier, up from 2.7% in July and in line with forecasts. On a monthly basis, prices increased 0.4%, doubling July’s pace. Core inflation—which excludes volatile food and energy costs—jumped 3.1% from last year, pointing to broader price pressures.&nbsp;Also Read: <a href="https://www.wionews.com/business-economy/how-the-us-bill-proposing-a-25-per-cent-tax-on-outsourcing-impacts-indian-it-giants-1757584696442">How the US bill proposing a 25 per cent tax on outsourcing impacts Indian IT giants</a>&nbsp;Trump has reimposed a 10% tariff on most US trading partners since returning to the White House in January, while also levying steep duties on steel, autos, and other sectors. Economists warn the full effect on consumers will build gradually as companies restock at higher import prices. Despite the uptick, markets expect the Fed to cut interest rates at its September 16–17 meeting, likely by 25 basis points—the first reduction since last December.&nbsp;Also Read: <a href="https://www.wionews.com/business-economy/mahindra-thar-crash-in-delhi-who-will-pay-the-damages-to-the-car-showroom-1757591954338">Mahindra Thar crash in Delhi: Who will pay the damages to the car, showroom?</a>&nbsp;The IMF also flagged signs of cooling demand and slowing job creation, saying the Fed has room to start lowering borrowing costs to support the economy. Rising food, energy, and housing expenses are straining households, said Heather Long of Navy Federal Credit Union, warning that “the middle-class squeeze from tariffs is here.” She pointed out steep annual jumps in everyday goods: coffee up 21%, audio gear 12%, and furniture 10%—all tied to higher import costs.&nbsp;

US consumer inflation hits 7-month high, but Fed still expected to cut rates

US consumer prices climbed in August to their fastest pace since January, government data showed on Thursday (September 11), even as analysts believe the Federal Reserve will press ahead with an interest rate cut next week. The rise highlights growing cost-of-living pressures on households as President Donald Trump’s tariffs ripple through the economy, complicating the Fed’s goal of keeping prices stable. The Labour Department reported that the consumer price index (CPI) rose 2.9% in August from a year earlier, up from 2.7% in July and in line with forecasts. On a monthly basis, prices increased 0.4%, doubling July’s pace. Core inflation—which excludes volatile food and energy costs—jumped 3.1% from last year, pointing to broader price pressures. Also Read: How the US bill proposing a 25 per cent tax on outsourcing impacts Indian IT giants Trump has reimposed a 10% tariff on most US trading partners since returning to the White House in January, while also levying steep duties on steel, autos, and other sectors. Economists warn the full effect on consumers will build gradually as companies restock at higher import prices. Despite the uptick, markets expect the Fed to cut interest rates at its September 16–17 meeting, likely by 25 basis points—the first reduction since last December. Also Read: Mahindra Thar crash in Delhi: Who will pay the damages to the car, showroom? The IMF also flagged signs of cooling demand and slowing job creation, saying the Fed has room to start lowering borrowing costs to support the economy. Rising food, energy, and housing expenses are straining households, said Heather Long of Navy Federal Credit Union, warning that “the middle-class squeeze from tariffs is here.” She pointed out steep annual jumps in everyday goods: coffee up 21%, audio gear 12%, and furniture 10%—all tied to higher import costs.

US inflation rose to 2.9% in August, its highest since January, but the Fed is still expected to cut rates next week amid signs of a weakening job market

US consumer inflation hits seven-month high, but Fed still expected to cut rates

US Producer Price Index (PPI) unexpectedly declined in August, according to new data from the Department of Labour, driven by falling energy costs and a dip in trade service margins. The Producer Price Index (PPI) dropped by 0.1% from the previous month, defying forecasts of a 0.3% rise. This marks the first monthly decline since April. On a yearly basis, PPI rose 2.6%, showing a slowdown from July’s annual pace. A significant contributor to the monthly drop was lower service prices, particularly in trade services, the Labor Department noted.&nbsp;Also Read: <a href="https://www.wionews.com/business-economy/who-is-larry-ellison-business-magnate-who-threatens-musk-s-world-richest-crown-1757509331796">Who is Larry Ellison, business magnate who threatens Musk's 'world-richest' crown?</a>&nbsp;President Donald Trump quickly reacted to the data on his Truth Social platform, declaring “No Inflation!!!” and renewed his push for immediate interest rate cuts. He criticised Federal Reserve Chair Jerome Powell again, calling him “a total disaster” for not acting faster. In a post on Truth Social, the US President said, “Just Out: No Inflation!!! ‘Too Late” must lower the RATE, BIG, right now. Powell is a total disaster, who doesn’t have a clue!!! President DJT&nbsp;The figures come at a critical time, with the Federal Reserve’s next interest rate decision just a week away. While elevated inflation has previously complicated rate cuts, cooling producer prices and a softening job market have strengthened expectations of a 25-basis-point rate reduction. Excluding volatile categories like food, energy, and trade services, core PPI still showed a 0.3% increase for the month and a 2.8% annual rise—the highest since March.&nbsp;Also Read: <a href="https://www.wionews.com/world/-no-accident-zelensky-accuses-russia-deliberately-targeting-poland-calls-for-joint-european-air-defence-system-1757503422121">‘No accident’: Zelensky accuses Russia ‘deliberately targeting’ Poland, calls for joint European air defence system</a>&nbsp;Carl Weinberg, chief economist at High Frequency Economics, said the report poses “no obstacle” to a rate cut, suggesting that price pressures appear less concerning than previously thought. Economists now await the Consumer Price Index report due Thursday (September 11), which could provide further clarity on inflation trends.

Trump calls Fed chief Jerome Powell ‘a total disaster’ after producer prices drops unexpectedly

US Producer Price Index (PPI) unexpectedly declined in August, according to new data from the Department of Labour, driven by falling energy costs and a dip in trade service margins. The Producer Price Index (PPI) dropped by 0.1% from the previous month, defying forecasts of a 0.3% rise. This marks the first monthly decline since April. On a yearly basis, PPI rose 2.6%, showing a slowdown from July’s annual pace. A significant contributor to the monthly drop was lower service prices, particularly in trade services, the Labor Department noted. Also Read: Who is Larry Ellison, business magnate who threatens Musk's 'world-richest' crown? President Donald Trump quickly reacted to the data on his Truth Social platform, declaring “No Inflation!!!” and renewed his push for immediate interest rate cuts. He criticised Federal Reserve Chair Jerome Powell again, calling him “a total disaster” for not acting faster. In a post on Truth Social, the US President said, “Just Out: No Inflation!!! ‘Too Late” must lower the RATE, BIG, right now. Powell is a total disaster, who doesn’t have a clue!!! President DJT The figures come at a critical time, with the Federal Reserve’s next interest rate decision just a week away. While elevated inflation has previously complicated rate cuts, cooling producer prices and a softening job market have strengthened expectations of a 25-basis-point rate reduction. Excluding volatile categories like food, energy, and trade services, core PPI still showed a 0.3% increase for the month and a 2.8% annual rise—the highest since March. Also Read: ‘No accident’: Zelensky accuses Russia ‘deliberately targeting’ Poland, calls for joint European air defence system Carl Weinberg, chief economist at High Frequency Economics, said the report poses “no obstacle” to a rate cut, suggesting that price pressures appear less concerning than previously thought. Economists now await the Consumer Price Index report due Thursday (September 11), which could provide further clarity on inflation trends.

US producer price index unexpectedly fell in August, driven by weaker energy and trade prices, boosting expectations for a Fed rate cut and prompting fresh Trump criticism

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Justice Department drops criminal probe of Fed chair Jerome Powell, likely paving the way for Kevin Warsh

Inflation defeated, growth surging: Trump says Canada–Mexico deal is irrelevant

Federal Reserve cuts key rate second time amid hiring slowdown, rising prices

US consumer inflation hits seven-month high, but Fed still expected to cut rates

Trump calls Fed chief ‘a total disaster’ after producer prices drops suddenly