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Criminal Probe Against Powell Shakes US Economic Order
Trump Administration Opens Criminal Investigation Into Fed Chair Jerome Powell, Raising Alarm Over Central Bank Independence.
The Trump administration has crossed a historic red line, opening a criminal investigation into Federal Reserve Chair Jerome Powell — a move that has sent shockwaves through financial markets and reignited fears of direct political interference in U.S. monetary policy.
Powell confirmed Sunday that the Department of Justice issued grand jury subpoenas tied to his congressional testimony about the $2.5 billion renovation of the Federal Reserve’s Washington headquarters. But in an unusually blunt public statement, the central bank chief dismissed the probe as a “pretext,” warning that it represents an effort to intimidate the Fed for refusing to bend interest-rate policy to presidential demands.
At its core, this confrontation is not about construction costs. It is about power.
Trump has repeatedly attacked Powell for resisting faster interest-rate cuts, openly threatening to fire him and attempting to remove fellow Fed governor Lisa Cook. The investigation now escalates that pressure into the criminal arena — a step critics say threatens the institutional firewall that has insulated the Fed from politics for decades.
Powell framed the moment starkly: either the Federal Reserve continues setting rates based on data and economic conditions, or monetary policy becomes subject to political coercion. His warning resonated immediately. U.S. stock futures slid, the dollar weakened, and investor anxiety surfaced across global markets — a reminder that confidence in the Fed’s independence underpins the credibility of the U.S. economy itself.
Trump publicly denied knowledge of the probe but continued to deride Powell’s leadership, reinforcing the perception of a coordinated pressure campaign. Legal experts note that under U.S. law, a president can only remove a Fed chair “for cause,” not for policy disagreements — a safeguard now being stress-tested.
The political fallout is growing. Senator Thom Tillis said he would block any new Fed chair nomination until the case is resolved, while Senator Elizabeth Warren accused Trump of attempting a “corrupt takeover” of the central bank. Even some Republican lawmakers are warning that the credibility of the Justice Department itself is now at stake.
With Powell’s chairmanship ending in May and Trump expected to name a successor soon, the timing is no accident. Whether this investigation succeeds or collapses, the signal has already been sent: the independence of America’s most powerful economic institution is under direct assault.
For markets, allies, and rivals alike, this is no longer just a legal dispute — it is a stress test of whether U.S. institutions can withstand presidential pressure in a new era of confrontational governance.
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President Embraces Ownership as Polls Show Public Skepticism
U.S. President Donald Trump said the American economy now belongs to him, declaring he is “very proud of it,” as he seeks to take full ownership of economic performance ahead of the November midterm elections.
Speaking in an interview with NBC Nightly News anchor Tom Llamas that aired Sunday during the Super Bowl, Trump said the transition from the Biden-era economy is complete. Asked when the country entered the “Trump economy,” he replied: “I’d say we’re there now.”
Trump’s comments come despite widespread public dissatisfaction. An NPR/Marist/PBS News poll released last week found that just 36% of Americans approve of Trump’s handling of the economy, while 59% disapprove. Democrats have capitalized on economic anxiety, particularly around affordability, in recent off-year election victories in states including Virginia, New Jersey and New York.
In the Oval Office interview, recorded Wednesday, Trump argued that Democrats have quietly dropped their affordability message because of recent economic performance. He blamed former President Joe Biden for high prices, saying he inherited “a mess in every way.”
“In the last four days, the Democrats have not uttered the word ‘affordability,’” Trump said, without offering evidence.
Trump claimed the economy has grown by 5.6% since he took office, a figure not supported by official government data. According to the Labor Department, the economy grew at an annualized rate of 4.4% in the third quarter of 2025 and has not exceeded 5% growth in any quarter since 2021.
Economic output also contracted in the first quarter of 2025, partly due to uncertainty surrounding trade and tariff policies later announced by the administration. Fourth-quarter data has not yet been released because of a government shutdown.
A White House official said Trump was referencing projections from the Atlanta Federal Reserve, which at times estimated growth as high as 5.4%.
Trump also claimed that $18 trillion is being invested in the United States, citing new factories, plants and businesses. However, the White House’s own website lists $9.6 trillion in announced investments, and independent reviews have said even that figure is likely inflated.
Asked whether those projects would materialize before his term ends in January 2029, Trump said many would open within the next year or two.
In a previous NBC interview in May, Trump had drawn a sharper line, saying the economy’s “good parts” were his, while the “bad parts” belonged to Biden.
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US and Russia Compete for Influence in Mali, Niger, and Burkina Faso
The Sahel is becoming a new geopolitical battleground — and Africa now has options.
The United States is recalibrating its policy toward Mali, Niger, and Burkina Faso as Russia expands its military and political footprint across the Sahel through its Africa Corps.
Mali’s Foreign Minister Abdoulaye Diop on Monday hosted a senior U.S. official, US State Department Africa bureau chief Nick Checker, in talks aimed at setting a “new course” in relations between Washington and the junta-led state. Checker reaffirmed U.S. respect for Mali’s sovereignty and signaled interest in broader engagement with Burkina Faso and Niger on shared security and economic priorities.
The outreach follows a wave of military coups between 2020 and 2023 that toppled elected governments in all three countries. Under the Biden administration, the U.S. sharply curtailed military cooperation. Under President Donald Trump, officials have adopted a more pragmatic approach, downplaying democracy as a prerequisite for engagement.
The shift comes as Mali, Niger, and Burkina Faso have severed or downgraded ties with France and the EU, withdrawn from ECOWAS, and formed the Alliance of Sahel States (AES). All three have deepened security cooperation with Russia, which now deploys forces from its Africa Corps and provides training and combat support.
Russia has highlighted joint operations in Niger, including the repulsion of a January attack on Niamey’s airport claimed by ISWAP, and has pledged continued assistance to regional armed forces. Meanwhile, jihadist violence persists, with recent attacks in both Mali and Niger underscoring the fragility of security gains.
U.S. diplomats say Washington is seeking to correct “past policy missteps” and explore conditions under which it could re-engage in counterterrorism efforts. Analysts note that the Sahel states’ vast mineral wealth — including gold, uranium, and lithium — adds another layer to the strategic competition.
As Europe struggles to coordinate a unified Sahel strategy, influence in the region is increasingly shaped by rivalry between global powers, leaving Mali, Niger, and Burkina Faso with greater leverage — and more choices — than before.
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Museveni Awards Son Muhoozi Uganda’s Second-Highest Military Medal
Family, power, and the army — Museveni decorates his son with one of Uganda’s top military honours.
Ugandan President Yoweri Kaguta Museveni has awarded his son, Chief of Defence Forces Muhoozi Kainerugaba, the Kabalega Star Medal, Uganda’s second-highest military decoration, citing his leadership in regional security operations.
The award was conferred on Friday during the 45th Tarehe Sita anniversary celebrations held in Kabale District. The Kabalega Star recognises exceptional gallantry and service and ranks just below the Order of Katonga, Uganda’s highest military honour.
In the official citation, Gen. Muhoozi was praised for his strategic leadership, courage, and role in modernising the Uganda People’s Defence Forces. He was credited with spearheading human resource reforms, strengthening elite units, and contributing to regional peace operations in Somalia, the Democratic Republic of Congo, and South Sudan.
Muhoozi, a Sandhurst-trained officer, rose through the ranks after early service in the Presidential Protection Unit, which later evolved into the Special Forces Command. He has led operations against the Allied Democratic Forces and participated in regional missions under AMISOM and ATMIS in Somalia.
The ceremony also honoured several senior officers for distinguished service, including Lt. Gen. Kayanja Muhanga and Lt. Gen. Charles Okidi, alongside other military, police, and prison service personnel. A posthumous award was presented to a resistance-era officer, received by his daughter.
President Museveni congratulated all recipients and urged them to wear their medals with pride, noting that full citations would be released publicly in due course.
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U.S. Senator Warns Somalia Crisis Poses Direct Security Risks to America
Washington is losing patience. Somalia’s instability is no longer seen as a distant problem — U.S. lawmakers say it’s a direct threat.
A senior U.S. senator has warned that instability in Somalia poses real and growing security risks to the United States, urging that all American counterterrorism and humanitarian assistance be strictly aligned with U.S. interests.
Speaking amid renewed debate in Washington over aid to Somalia, Jim Risch, a member of the U.S. Senate, said preventing corruption and financial abuse must be the top priority in any engagement with Mogadishu.
“The United States faces real security threats from the crisis in Somalia, and it is imperative that efforts related to counterterrorism and humanitarian assistance serve the interests of the United States first,” Risch said. He stressed that American funds must be managed transparently to ensure they do not end up benefiting armed groups, corrupt officials, or criminal networks.
Risch’s remarks come as U.S. policymakers reassess decades of assistance to Somalia, amid concerns that aid has, at times, fueled instability rather than reduced it. Washington recently suspended portions of its assistance after allegations of corruption, including the diversion of food aid from humanitarian warehouses. Aid was later partially restored after the Somali government returned the stolen supplies.
The comments also reflect the broader posture of the Trump administration, which has tightened scrutiny of foreign aid and severed ties with several international agencies. Officials have said future funding must demonstrate clear benefits to U.S. national security and foreign policy objectives.
President Donald Trump has repeatedly criticized how aid to Somalia has been managed, arguing that weak oversight risks empowering extremist groups and undermining U.S. interests in the Horn of Africa.
Risch’s statement underscores a hardening stance in Washington: Somalia is no longer viewed solely as a humanitarian concern, but as a potential source of direct threats if U.S. engagement is not tightly controlled and accountable.
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Germans Grow More Anxious About Social Inequality
Public concern over social inequality in Germany is rising, according to a new nationwide opinion poll, as Chancellor Friedrich Merz’s conservative bloc loses ground amid heated debate over welfare reforms.
The ARD-Deutschlandtrend survey, conducted by infratest-dimap between February 2 and 4 among roughly 1,300 voters, shows slight losses for Merz’s CDU/CSU alliance and modest gains for their coalition partners, the Social Democratic Party (SPD). The findings come after weeks of controversy over proposals to restructure Germany’s welfare state.
At the start of February, the CDU/CSU stood at 26% support, down slightly from January. The SPD gained two points, a rare upward shift, while the far-right Alternative for Germany (AfD) slipped marginally but remains the second-largest force at 24%. The Greens and the Left Party held steady at 12% and 10% respectively.
A clear majority of respondents expressed concern about growing inequality. Sixty-two percent said social injustice is increasing, up two points from July last year, and most believe the gap between rich and poor is widening. Thirteen percent more than a year ago now say taxes and social security contributions are unfairly distributed.
Among all parties, the SPD was seen as most capable of promoting social justice, with 24% of respondents placing their trust in the center-left party. Only 9% said they believe foreigners or asylum-seekers receive preferential treatment over Germans, a decline from previous surveys.
Pollsters attribute the SPD’s gains partly to Finance Minister Lars Klingbeil, whose popularity rose five points after he adopted a tougher tone toward U.S. President Donald Trump. Defense Minister Boris Pistorius remains Germany’s most respected politician, followed by Foreign Minister Johann Wadephul, while Chancellor Merz trails with an approval rating of 25%.
Merz has drawn criticism for recent remarks questioning Germans’ work-life balance and sick leave, as well as proposals from CDU-linked groups to curb part-time work and social benefits. While there is broad agreement that Germany’s welfare system needs reform, the poll suggests voters are increasingly wary of changes they see as deepening inequality.
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Jubaland President Meets U.S. AFRICOM Special Operations Officers
The President of Jubaland, Ahmed Mohamed Islam, held a meeting with U.S. Special Operations officers serving under the United States Africa Command mission in Jubaland, praising their role in recent security operations across the region.
According to Jubaland officials, the president thanked the officers for their continued cooperation in training and joint operations targeting the militant group commonly referred to locally as the Khawarij, a term used for Al-Shabab. He credited the partnership with contributing to recent military successes against the group in several parts of Jubaland.
President Ahmed Mohamed Islam commended the officers for what he described as their professionalism, courage, and operational support, noting that the collaboration has strengthened local security capabilities.
During the meeting, the Jubaland leader formally awarded the Special Operations officers Medals of Honor and Certificates of Appreciation in recognition of their contribution to regional stability and counterterrorism efforts.
The engagement underscores ongoing security cooperation between Jubaland authorities and U.S. forces as part of broader efforts to combat militant activity in southern Somalia.
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Trump’s Curbs on CEO Pay and Dividends Rattle Defense Stock Investors
Bigger defense budgets, smaller rewards. Is Washington fixing procurement failures — or breaking the incentives that power the arms industry?
Investors in U.S. defense contractors are growing uneasy after President Donald Trump imposed new restrictions on executive pay, dividends, and stock buybacks, injecting fresh uncertainty into a sector already navigating rising geopolitical demand and government oversight.
Under an executive order signed January 7, defense firms are barred from paying dividends or repurchasing shares until they can deliver weapons “on time and on budget.” Trump has also proposed capping CEO compensation at $5 million annually. The moves come even as the administration signals a major increase in overall defense spending.
Market participants say the combination sends mixed signals. While higher military budgets promise stronger long-term demand, investors fear the White House is micromanaging capital allocation in ways that could depress shareholder returns and weaken the industry’s ability to attract top executives.
Portfolio managers argue that dividends and buybacks are not the cause of production delays or weapons shortages. Instead, they point to inconsistent Pentagon ordering and procurement bottlenecks. Many contractors already generate enough cash to expand capacity, they say, but lack firm long-term orders to justify large capital investments.
Defense executives have sought to reassure markets. Some companies have pledged to maintain dividends while balancing investment needs, while others have paused buybacks pending clarity on policy enforcement. Still, analysts warn the restrictions may hit mature, dividend-paying firms hardest, potentially shifting investor interest toward newer defense technology players that rely less on shareholder payouts.
Historically, even during wartime, U.S. defense firms have paid dividends. Critics of the new policy argue that limiting payouts risks distorting investment flows rather than fixing procurement inefficiencies. Supporters counter that contractors must prioritize delivery to the military over executive pay and shareholder rewards.
For now, the sector faces a paradox: rising global demand for weapons, paired with tighter political control over profits. How long investors tolerate that tension may shape the future structure of America’s defense industry.
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House Oversight Chair Seeks Records From Firms Linked to Ilhan Omar’s Husband
WASHINGTON — The Republican chairman of the House Oversight Committee has requested records from companies partially owned by the husband of Democratic Rep. Ilhan Omar, an unusual step that places the spouse of a sitting lawmaker under congressional scrutiny.
Rep. James Comer of Kentucky sent a letter Friday to Timothy Mynett, a former Democratic political consultant married to Omar, seeking documents related to two firms — the eStCru winery and investment firm Rose Lake Capital. Comer cited Omar’s 2024 financial disclosure, which showed the companies’ reported value rose sharply between 2023 and 2024.
In the letter, Comer said there were “serious public concerns” about how the businesses increased so dramatically in value within a year. Financial disclosures require lawmakers to report asset values within broad ranges, making the exact increase and Mynett’s ownership stake unclear.
The move is notable because allegations involving lawmakers or their family members are typically handled by the bipartisan House Ethics Committee, not the Oversight panel. Comer’s action reflects his broader approach to aggressively expanding the committee’s investigative scope, including recent efforts to compel testimony from former President Bill Clinton and former Secretary of State Hillary Clinton in a separate probe.
There is no public evidence of wrongdoing by Omar or her husband. Omar has previously dismissed repeated attacks on her finances as misleading and rooted in conspiracy theories. Her office did not immediately respond to a request for comment.
The scrutiny follows remarks last month by President Donald Trump, who said the Justice Department was looking into Omar’s finances. Omar responded online that years of investigations had “found nothing,” accusing the president of panicking amid political pressure.
In her disclosure, Omar noted that Mynett reported modest income from the winery — between $5,000 and $15,000 — and no income from Rose Lake Capital during the reporting period.
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