DOJ Investigates Fed Chair Jerome Powell Over Testimony on Building Project

DOJ Subpoenas Federal Reserve

• 🏛️ The Department of Justice has served the Federal Reserve with grand jury subpoenas as part of an ongoing, previously undisclosed criminal investigation.
• 🗓️ Federal Reserve Chairman Jerome Powell revealed the subpoenas were issued on Friday and relate to his testimony before the Senate Banking Committee last June.

Powell's Defiant Stance

• 🗣️ Powell stated the investigation is a pretext, arguing the threat of criminal charges stems from the Fed setting interest rates based on public service rather than presidential preferences.
• ⚖️ He emphasized the core issue is whether monetary policy will be guided by evidence and economic conditions or by political pressure and intimidation.

Investigation Details and Context

• 📍 A source familiar with the investigation confirmed it is being handled by the US attorney's office for the District of Columbia.
• 📰 The Justice Department spokesman indicated that the attorney general has directed US attorneys to prioritize investigating abuse of taxpayer dollars.
• 🗣️ President Trump denied knowledge of the DOJ's actions but criticized Powell's performance at the Fed.
• 🤔 The exact nature of the DOJ's investigation is unclear, but it may involve whether Powell knowingly lied to Congress regarding the Fed's building construction project, as previously accused by FHFA Director Bill Py.