After months of harassment by the President of the United States, Donald Trump, against the head of state Jerome Powell, the harassment has risen to a higher level. Powell confirmed this Sunday that the United States Attorney’s Office has opened a criminal investigation into the renovation works at the institution’s headquarters in Washington. Federal prosecutors are investigating whether Powell lied during his appearance in Congress last summer to explain the details of the project, according to reports The New York Times.
“On Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas threatening criminal charges related to my testimony before the Senate Banking Committee last June,” Powell announced in a rare video posted on the Federal Reserve’s X account. “That testimony referred in part to a multi-year project to renovate historic Federal Reserve office buildings,” Powell said.
The person responsible for monetary policy has assured that the investigation responds to his efforts to maintain the independence of the institution and not bend to the will of the tenant of the Oval Office, who demands steeper interest rate cuts. In the video, Powell noted: “The threat of criminal charges is because the Federal Reserve sets interest rates based on our best assessment of what will benefit the general interest, rather than following the president’s preferences.”
The Fed Chairman, very seriously, has insisted: “It is a question of whether the Federal Reserve will be able to continue setting interest rates based on evidence and economic conditions, or whether, instead, monetary policy will be guided by political pressure or intimidation.”
President Trump has been harassing, insulting and threatening to fire Powell for months, who was appointed Fed chairman by the Republican magnate himself during his first term in 2018. “I have deep respect for the rule of law and accountability in our democracy. No one, least of all the chairman of the Federal Reserve, is above the law, but this unprecedented action must be analyzed in the broader context of the administration’s threats and constant pressure,” declared the New York economist.
Trump has called Powell “stupid,” “unintelligent,” “sir too late.” He has threatened to fire him, but his advisors have explained to him that legally it would be very complicated, due to the autonomy of the Federal Reserve. Despite this, he still insists on it from time to time. He has also opened a selection process to choose Powell’s successor, whose term ends in May, and although Trump could renew him, he has decided to remove him.
The U.S. Attorney’s Office for the District of Columbia, where the nation’s capital is located, is overseeing the investigation. The dossier, which includes an analysis of Powell’s public statements and an examination of spending records, was approved in November by Jeanine Pirro, a longtime Trump ally, several officials told The Associated Press. Times.
Despite the Republican president’s attacks, Powell had never referred to insults or threats during his public interventions. “I have served at the Federal Reserve under four administrations, both Republican and Democratic. In each case, I have performed my duties without fear or political favor, focused solely on our mandate of price stability and maximum employment.”
The New York real estate developer turned politician visited the construction of the Federal Reserve headquarters, located on Constitution Avenue in the capital, a few hundred meters from the White House, and reproached Powell for cost overruns. “Public service sometimes requires standing firm in the face of threats. I will continue to do the job the Senate confirmed me to do with integrity and a commitment to serving the American people.”
