Jerome Powell on DOJ Subpoenas: Political Pressure vs. Fed Independence

Federal Reserve Faces DOJ Subpoenas

• 🏛️ The Department of Justice has served the Federal Reserve with grand jury subpoenas, reportedly related to Jerome Powell's prior Senate testimony.
• ⚠️ Powell stated that this unprecedented action is a threat of criminal charges, not about building renovations or congressional oversight.

Allegations of Political Pressure

• 🎯 Powell asserts that the DOJ's action is a consequence of the Fed setting interest rates based on economic evidence rather than political preferences.
• ⚡ The core issue, according to Powell, is whether monetary policy will be dictated by political pressure or intimidation.

Powell's Commitment to Independence

• 🇺🇸 Having served under four administrations, Powell emphasized his commitment to carrying out his duties with integrity and without political fear or favor.
• ⚖️ He affirmed his dedication to the Fed's mandate of price stability and maximum employment, stating he will stand firm in the face of threats.