Trump threatens to fire Powell

While Powell's term as chair expires in May, he holds a separate seat on the Board of Governors until 2028 and has indicated he will not leave until the criminal probe is resolved.

President Trump has criticized the Fed's independence and signaled that his nominee to replace Powell, Kevin Warsh, should take over without delay.

Bipartisan concerns are growing that the investigation is politically motivated to force a leadership change at the central bank.

Markets are closely watching the standoff, as any forced removal of a Fed chair would be unprecedented and potentially destabilizing to the global economy.