Jerome Powell, the chair of the Federal Reserve, has been the subject of a criminal investigation by federal prosecutors, he announced on Sunday. Powell revealed that the US Department of Justice (DoJ) threatened to file a criminal indictment against the agency for testimony he provided to a Senate committee regarding improvements to Federal Reserve facilities, a highly unprecedented step.
Powell described the investigation as “unprecedented” and stated that he thought it was started because of Donald Trump’s ire over the Fed’s failure to lower interest rates in spite of the president’s repeated demands. Trump claimed not to “know anything” about the probe. A request for comment has been made to the Department of Justice.
Trump has called Powell “Mr. Too Late” and a “numbskull” in their long-running rivalry, which has so far been mostly one-sided. In his statement on Sunday, Powell warned that the US central bank’s independence is in jeopardy, marking the first time he has openly and forcefully retaliated against Trump.
“This is about when the Fed will be able to keep trying to set interest rates based on facts and economic conditions, or rather instead monetary policy will be directed by political influence or intimidation,” Powell stated.
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