Jerome Powell Claims Trump’s DOJ Probe Is Retaliation For Interest Rates
Federal Reserve Chairman Jerome Powell on Sunday accused President Donald Trump of trying to “manipulate” the Federal Reserve through a criminal perjury investigation.
Florida Republican Rep. Anna Paulina Luna referred Powell to the Justice Department in July, alleging he lied to the Senate Banking Committee about renovations to the Federal Reserve headquarters in Washington in June. Powell confirmed the investigation in a scathing video statement released Sunday evening. (RELATED: DOJ Opens Investigation into Fed Chairman)
“I have deep respect for the rule of law and for accountability in our democracy. No one – certainly not the Chairman of the Federal Reserve – is above the law. But this unprecedented action must be seen in the broader context of the administration’s continued threats and pressures,” Powell said. “This new threat does not concern my testimony last June or the renovation of the Federal Reserve buildings. It does not concern the oversight role of Congress; the Fed, through testimony and other public disclosures, has done everything possible to keep Congress informed of the renovation project. These are only pretexts.”
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“The threat of criminal prosecution is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the president’s preferences,” Powell continued. “It’s a question of whether the Fed will be able to continue setting interest rates based on evidence and economic conditions, or whether monetary policy will instead be driven by political pressure or intimidation. »
Trump and Powell clashed over the Fed’s resistance to lowering interest rates at the pace the president desired. Powell has also been criticized for his handling of inflation under the Biden administration, initially predicting that inflation would be transient during an August 2021 speech in Jackson Hole, Wyoming, before later admitting that inflation ended up being more persistent than he “expected.”
Trump questioned Powell about the renovations during a July 24 tour of the Federal Reserve headquarters project site with South Carolina Republican Sen. Tim Scott, presenting Powell with documents purporting to show that the cost of the project had ballooned to $3.1 billion, a cost overrun of about 25 percent. (RELATED: Jerome Powell, Wearing Helmet, Visibly Shakes Head at Trump During Fed Building Tour)
“So we take a look at it, it looks like it’s about 3.1 billion, it went up a little bit, maybe a lot. The 2.7 is now 3.1. It just came out,” Trump said as he pulled out a sheet of paper appearing to list cost overruns.
“I’m not aware of that, I haven’t heard that from anyone,” Powell responded, seemingly stunned, after putting on glasses to read the document. He then pointed out that the $3.1 billion included “the Martin renovation,” completed in 2021, which he described as “a third building” constituting the headquarters of the Federal Reserve.
Powell’s term as Fed chair ends in May 2026; he could remain Fed governor until January 2028.
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