Federal Reserve Chair Jerome Powell said Sunday that the Justice Department subpoenaed the central bank Friday with the threat of a criminal indictment, the latest move in a yearlong pressure campaign from the Trump administration.
Powell said the threatened indictment related to his testimony before the Senate in June about the renovation of Federal Reserve office buildings.
“No one — certainly not the chair of the Federal Reserve — is above the law,” Powell said. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
Powell said the Justice Department’s subpoenas were just the latest way for the administration to exert control over the Fed and its decisions on 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,” he said.
Powell indicated that the administration’s latest tactic would not lead to his departure from the central bank, which President Donald Trump has repeatedly called for. Powell said he would “continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people.”
Top White House officials have accused Powell of mismanagement of a previously planned renovation of the Federal Reserve building. Over the summer, they suggested he misled Congress about the renovation of the central bank’s headquarters.
The Federal Reserve said over the summer it has brought in its inspector general to review the building expansion. Powell ordered the review following criticism from Trump over the project, which was hit by cost overruns.
But Powell has also said the plans have evolved over time.
The White House, Justice Department and office of U.S. Attorney Jeannine Pirro did not immediately respond to requests for comment.
In early evening trading, markets did not react
Trump has spent months attacking Powell, who he appointed to the job during his first term, accusing Powell of not acting fast enough to lower interest rates. Trump said in an interview with The New York Times last week that he had already selected a replacement for Powell when his term ends in May.
The Justice Department has also taken steps to investigate mortgage fraud allegations against Federal Reserve governor Lisa Cook. Cook has denied the allegations, according to filings this week from her legal team.
This is a developing story. Please check back for updates.
