Powell Probe Is Another Blow to Fed Independence, Scope Says

The Trump administration’s new legal assault on the Federal Reserve further threatens independence and makes it harder for the central bank’s next chief to do their job, according to Scope Ratings.

In a statement on Monday, the European credit assessor observed that the criminal probe into Chair Jerome Powell is another example of the sort of policy that prompted the company to cut the country in October to its fourth-highest rung, placing it on the same level as France.

Chairman of the US Federal Reserve Jerome Powell

Photographer: Al Drago/Bloomberg

“This reflects one of the main negative drivers for the downgrade of the US sovereign rating to AA-,” ...