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Federal Reserve Investigation Stalemate Complicates Walsh's Succession Path

On March 20, sources revealed that senior officials in the U.S. Department of Justice are fully supporting a federal prosecutor's investigation into Federal Reserve Chairman Jerome Powell, and the White House has not opposed this. This situation intensifies the high-risk game between both parties and significantly impacts the future leadership selection of the Federal Reserve. According to insiders, former President Trump had previously been open to proposals to terminate the investigation into Powell before a judge dismissed a subpoena issued against the Federal Reserve last Friday. However, due to anger over the ruling and a long-standing belief that the courts are biased against him, aides and allies now believe Trump supports an appeal. Following the dismissal of the subpoena last week, federal prosecutor Jeanine Pirro announced she would appeal the court's decision. Although Trump has not publicly commented on Pirro's actions, some of his aides were surprised by it. According to another anonymous source familiar with internal discussions, the leadership of the Justice Department is currently backing Pirro. Some insiders pointed out that the judge's ruling initially provided the Trump administration with a potential 'off-ramp' to terminate the investigation into Powell, allowing the controversy surrounding it to quietly subside. However, continuing legal proceedings mean Trump may have to wait longer for his chosen nominee for Federal Reserve Chairman, Walsh, to take over the Fed.

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