Jerome Powell Under DOJ Investigation for Federal Reserve HQ Project Testimony

DOJ Investigation into Jerome Powell

• 🏛️ Federal Reserve Chair Jerome Powell confirmed he is under a criminal investigation by the Justice Department.
• 🔍 The probe is reportedly examining testimony Powell gave to Congress regarding renovations at the Fed's D.C. headquarters.
• ⚠️ Powell claims the investigation is tied to threats and ongoing pressure from the Trump administration, particularly concerning interest rate policies.

Powell's Perspective on the Probe

• ⚖️ Powell stated the threat of criminal charges stems from the Federal Reserve setting interest rates based on its assessment of public service, not presidential preferences.
• 📢 He revealed this information in a video statement, noting the DOJ served grand jury subpoenas to the Federal Reserve.
• 🏗️ The renovations have faced criticism from Trump administration officials, who deemed them costly and ostentatious, with some alleging legal violations.

Broader Implications and Reactions

• 🚨 Powell described the probe as an unprecedented action within the context of administration pressure on interest rates.
• 🏦 A DOJ spokesperson stated the attorney general directed US attorneys to prioritize investigating abuse of taxpayer dollars.
• 📉 Lawmakers from both parties expressed concern, with Republican Tom Tillis stating it demonstrates efforts to end the independence of the Federal Reserve.
• 📈 Others warned that undermining the Fed's independence could destabilize markets.
• 🗣️ President Trump told NBC News he was unaware of the probe, despite previously appointing Powell and later criticizing and floating his termination.