Fed Chair Powell Claims Trump Administration Threatened Indictment Over Building Project

Allegations of Indictment Threat

• 🏛️ Federal Reserve Chair Jerome Powell stated that the Trump administration threatened him with indictment over his testimony concerning a Fed building project.
• ⚖️ Powell revealed that the Department of Justice served the Federal Reserve with grand jury subpoenas, which he believes were a pretext to gain influence over the central bank's monetary policy.
• 🗣️ He asserted that the threat was not about his testimony or the building renovation itself, but rather about the Fed setting interest rates based on its assessment of public service, not presidential preferences.

Trump's Stance and Fed's Independence

• 📉 Donald Trump has publicly demanded the Fed cut rates and has mused about firing Powell, despite legal protections for the Fed chair.
• 📰 Trump told NBC News that he had no knowledge of the Justice Department's actions and criticized Powell's performance at the Fed and with building projects.
• 🏛️ A Justice Department spokesperson declined to comment but noted that the attorney general instructed US attorneys to prioritize investigating abuse of taxpayer dollars.

Political and Market Reactions

• ❓ Republican Senator Tom Tillis questioned the independence and credibility of the Department of Justice due to the threatened indictment.
• 🚫 Tillis vowed to oppose any Trump nominees to the Fed until the legal matter is resolved.
• 📈 In immediate market reaction, the dollar slipped and S&P 500 futures declined following news of the deepening feud.
• 🎤 Powell pledged to continue performing the duties for which he was confirmed by the Senate, despite his term as chair ending in May.