President Donald Trump made clear Monday that he wants the federal investigation into Federal Reserve Chair Jerome Powell to keep going, brushing off warnings that the probe threatens the independence of America's central bank.

Trump Wants Investigation to Continue

Speaking from the Oval Office, Trump was asked whether he would encourage U.S. Attorney for the District of Washington Jeanine Pirro to drop the investigation into Powell, according to reports. His answer was straightforward: he wants her to "take it to the end and see."

Trump has repeatedly accused Powell of mismanaging funds related to renovations of the Federal Reserve's headquarters, a project the president has criticized as wastefully expensive. The investigation isn't just symbolic—it involves grand jury subpoenas and the real possibility of criminal charges.

Powell Says It's About Interest Rates, Not Renovations

Powell isn't buying the official explanation. Last month, he said the probe was designed to pressure the Fed into lowering interest rates to align with Trump's preferences rather than economic fundamentals.

"The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President," Powell said in a video statement on January 11.

This investigation represents the most serious escalation in Trump's long-running feud with Powell, whom he's publicly criticized over interest rates since his first presidential campaign.

The international central banking community has taken notice. Leaders from countries including Sweden, Switzerland, Australia, and Canada issued an open letter supporting Powell, calling him a "respected colleague held in the highest regard."

The Bigger Picture

Last month, Trump ramped up his attacks on Powell, demanding immediate interest rate cuts and accusing him of damaging the U.S. economy and national security by keeping borrowing costs elevated. At an Iowa rally, Trump called Powell slow and indecisive, predicting rates would drop sharply under his successor, whom he plans to name after Powell's term ends in May.

Powell has maintained rates in the 3.5%–3.75% range, emphasizing that future decisions will be driven by economic data rather than political pressure.

The situation escalated when the Justice Department threatened the Fed with a potential criminal indictment over its headquarters renovation. Economist Justin Wolfers described the move as unprecedented, warning it resembles authoritarian tactics and creates risks of future political interference in monetary policy. Markets have responded cautiously amid the uncertainty.