Criminal probe gets launched into Federal Reserve Chair Jerome Powell

(MENAFN) Federal Reserve Chairman Jerome Powell announced Sunday that U.S. prosecutors have opened a criminal investigation into him. In a video statement, he revealed that the Justice Department had issued subpoenas and threatened possible charges connected to testimony he gave before the Senate about renovations to Fed facilities.

Powell described the move as “unprecedented” and suggested it stemmed from his refusal to bow to President Donald Trump’s repeated demands to lower interest rates. He argued that the probe raises questions about whether monetary policy will continue to be guided by economic evidence or instead be shaped by political intimidation.

He stated, “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.” Powell added, “I have deep respect for the rule of law and for accountability in our democracy. No one, certainly not the chair of the Federal Reserve is above the law, but this unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure.”

Trump, asked about the matter in a television interview, denied knowledge of the investigation but criticized Powell’s performance, saying, “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.”

Although prosecutors have not confirmed the probe, it marks another escalation in Trump’s ongoing clash with Powell, whom he appointed as Fed chair in 2017.

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