Federal Reserve Chair Jerome Powell said Sunday the Department of Justice has served the central bank with subpoenas and threatened it with a criminal indictment over his testimony about the Fed’s building renovations. The move represents a major escalation in President Donald Trump’s battle with the Fed, an independent agency he has repeatedly attacked for not cutting its key interest rate as quickly as Trump prefers. Video above: The economic consequences of Trump’s pressure on the Federal ReserveIn a video statement, Powell said the threat of criminal charges are “pretexts” to undermine the Fed’s independence when it comes to setting interest rates. “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation,” Powell said. A spokesperson for U.S. Attorney Jeanine Pirro’s office didn’t immediately respond Sunday to a text message and phone call seeking comment.
Federal Reserve Chair Jerome Powell said Sunday the Department of Justice has served the central bank with subpoenas and threatened it with a criminal indictment over his testimony about the Fed’s building renovations.
The move represents a major escalation in President Donald Trump’s battle with the Fed, an independent agency he has repeatedly attacked for not cutting its key interest rate as quickly as Trump prefers.
Video above: The economic consequences of Trump’s pressure on the Federal Reserve
In a video statement, Powell said the threat of criminal charges are “pretexts” to undermine the Fed’s independence when it comes to setting interest rates.
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation,” Powell said.
A spokesperson for U.S. Attorney Jeanine Pirro’s office didn’t immediately respond Sunday to a text message and phone call seeking comment.
