Jerome Powell Addresses DOJ Subpoenas and Political Pressure on the Fed

Federal Reserve Subpoenaed by DOJ

• 🏛️ Federal Reserve Chair Jerome Powell confirmed the institution received grand jury subpoenas from the Department of Justice.
• 📄 These subpoenas are related to his June congressional testimony concerning the renovation of historic Federal Reserve buildings.
• ⚖️ Powell emphasized his respect for the rule of law and accountability, stating no one is above it.

Unprecedented Action and Political Context

• ⚠️ Powell characterized the DOJ's action as unprecedented and linked it to broader administration threats and ongoing pressure.
• 🗣️ He argued that the subpoenas are not truly about the renovation project or congressional oversight, but rather a pretext.
• 🎯 The core issue, according to Powell, is the Fed's ability to set interest rates based on economic evidence rather than presidential preferences.

Monetary Policy and Independence

• 📉 Powell asserted that the threat of criminal charges aims to intimidate the Fed into allowing monetary policy to be directed by political pressure.
• 🇺🇸 He highlighted his commitment to serving the public with integrity, having worked under four administrations without political fear.
• 🎯 Powell stated he will continue to perform his duties with integrity, focusing on the Fed's mandate of price stability and maximum employment.