U.S. Fed Chief Powell Under Criminal Investigation
"The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president," Powell stated in a video released amid mounting tensions with the White House.
The investigation centers on Powell's congressional testimony last June regarding a $2.5 billion renovation of the Federal Reserve headquarters, according to U.S. media reports. The US Attorney's Office in Washington is reportedly examining whether the Fed chief misled lawmakers about the project's scope.
However, Powell firmly rejected this framing. "This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings," he declared. The stakes, he argued, extend far beyond administrative matters: "This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead monetary policy will be directed by political pressure or intimidation."
President Donald Trump—who has persistently criticized Powell for maintaining higher interest rates—denied orchestrating the investigation during a Sunday interview with NBC News. "I don't know anything about it, but he's certainly not very good at the Fed, and he's not very good at building buildings," Trump said.
When pressed on whether he pressured officials to pursue charges, Trump responded: "No, I wouldn't even think of doing it that way. What should pressure him is the fact that rates are far too high."
The president has repeatedly demanded aggressive rate cuts and previously expressed his desire to remove Powell from leadership. Last month, Trump blasted the renovation costs, claiming the project "is going to end up costing more than $4 billion" and would represent the "highest price of construction per square foot in the history of the world." He added bluntly that he would "love to fire" Powell.
Trump also confirmed last week to The New York Times that his top economic adviser Kevin Hassett is a frontrunner to replace Powell, whose chairmanship expires in May. Though his term as a Fed governor extends through January 2028, Powell hasn't indicated whether he'll remain on the board after relinquishing the chair position.
Administration critics contend Trump has eroded the longstanding separation between the White House and the Justice Department, transforming law enforcement into a political weapon. The president has additionally floated pursuing a lawsuit against Powell "for incompetence" connected to the renovation debacle.
In his statement, Powell acknowledged legal accountability while cautioning against weaponizing monetary policy. "No one, certainly not the chair of the Federal Reserve, is above the law," he said. "But this unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure."
The Fed chairman emphasized his commitment to institutional independence regardless of political headwinds. "In every case, I have carried out my duties without political fear or favor, focused solely on our mandate of price stability and maximum employment," he said. "I will continue to do the job the Senate confirmed me to do."
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
