Fed Chair Powell Addresses Federal Criminal Probe and Political Pressure on Monetary Policy

Federal Criminal Probe and Subpoenas

• 🏛️ The Department of Justice served the Federal Reserve with grand jury subpoenas on Friday, related to testimony given last June.
• ⚠️ The subpoenas threaten a criminal indictment concerning testimony about a multi-year renovation project of Federal Reserve office buildings.

Allegations of Political Intimidation

• 🎯 The Fed Chair asserts that the threat of criminal charges is not about the renovation project or testimony, but a consequence of setting interest rates based on economic assessment rather than presidential preference.
• ⚖️ This action is framed as an attempt to direct monetary policy through political pressure or intimidation, rather than evidence and economic conditions.

Commitment to Independent Monetary Policy

• 🤝 Powell emphasizes his commitment to serving the public and carrying out duties without political fear or favor, focusing on the mandate of price stability and maximum employment.
• 🗣️ He states that public service sometimes requires standing firm against threats and that he will continue his job with integrity.