On Sunday evening, the Federal Reserve posted a video message on X in which Chair Jerome Powell said the Justice Department had “served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June,” testimony that he said concerned a multi-year project to renovate Federal Reserve office buildings.
Powell characterized the move as “unprecedented,” arguing it should be viewed “in the broader context of the administration’s threats and ongoing pressure” on the central bank. He said the subpoenas were “not about my testimony last June or about the renovation of the Federal Reserve buildings,” calling those explanations “pretexts.” According to Powell, the threat of criminal charges stems instead from the Fed’s decision to set interest rates “based on our best assessment of what will serve the public rather than following the preferences of the president.”
President Donald Trump, speaking to NBC News on Sunday night, claimed he was unaware of the DOJ action and criticized Powell’s performance both at the Fed and on the building project, saying “he’s certainly not very good at the Fed, and he’s not very good at building buildings.”
Sen. Thom Tillis (R-NC), a senior member of the Senate Banking Committee, said the Justice Department’s investigation into Powell raised questions about the agency’s independence. He warned he would oppose Trump’s nominees to the Federal Reserve until the issue is resolved.
“If there were any remaining doubt whether advisers within the Trump administration are actively working to end the independence of the Federal Reserve, there should now be none,” Tillis said in a statement. “It is now the independence and credibility of the Department of Justice that are in question.”
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