Jerome Powell Says DOJ Threatens Criminal Charges As Fed Resists Trump’s Rate Demands

Federal Reserve (Fed) Chair Jerome Powell said in a statement that the US Justice Department has threatened criminal charges against him in connection with his Senate Testimony last June, during which he discussed the estimated $2.5 billion renovation.

“On Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June,” Powell said.

According to Powell, the move is unprecedented and a direct challenge to the Fed’s independence.

The probe’s launch by the US attorney’s office in Washington, approved in November by Jeanine Pirro, a President Trump ally appointed last year to run the office, includes a review of Powell’s public testimony and an examination of spending records linked to the project.

Trump Opens New Legal Front Against Fed Chair Powell Amid Rate Cut Disputes

The recent investigation now opens a major new legal front against Powell, whom Trump has repeatedly attacked for resisting demands to sharply cut interest rates.

President Trump has repeatedly and publicly threatened to fire the Fed chair, despite nominating him in 2017, and has raised the prospect of legal action over the renovation, which he described as “incompetence.”

Even though Powell stands and respects accountability, he has repeatedly warned that the action must be viewed in its broader political context of the administration’s threats and ongoing pressure.

Instead, Powell directly linked the threat to monetary policy decisions. “Those are pretexts. 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,” he said.

Powell has now said that he would continue in his role without yielding to pressure. 

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