The New York Times reported, citing officials, that the U.S. Attorney for the District of Columbia has opened a criminal investigation into U.S. Federal Reserve Chair Jerome Powell. The newspaper added that the investigation concerns the Federal Reserve’s renovation of its headquarters in Washington, D.C.
Jerome Powell stated that the Department of Justice served the central bank with subpoenas and threatened him with a criminal charge over his testimony before Congress regarding the Federal Reserve building renovations.
Powell criticized the move as part of a pressure campaign by President Donald Trump against the financial institution.
“The threat of criminal charges is the result of the Federal Reserve setting interest rates based on our best assessment of what will serve the people, rather than following the President’s preferences,” he said in a video statement.
Investigation Priority
The Department of Justice said in a statement that it could not comment on any specific case, but added that Attorney General Pam Bondi has “instructed U.S. Attorneys to prioritize investigating any misuse of taxpayer funds.”
The move represents an unprecedented escalation in Trump’s battle with the Federal Reserve, an independent agency he has repeatedly attacked for not lowering the benchmark interest rate as quickly as the U.S. President prefers.
The subpoena relates to his testimony before the Senate Banking Committee in June of last year, Powell said, regarding a $2.5 billion project to renovate two Federal Reserve administrative buildings—a project Trump has criticized as excessive spending.
It is noted that Trump has long criticized Powell and called for his removal on more than one occasion, stating that the announcement of his nominee for the Federal Reserve chairmanship might be delayed until the beginning of this year. Powell’s term as chair ends in late May, but he can remain on the Board of Governors for two additional years.
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