By Kay Noel
Federal Reserve Chairman Jerome Powell announced on Sunday that the US Department of Justice (DOJ) has opened a criminal investigation into him, citing “unprecedented” actions by the administration. The probe is related to his testimony about renovations to Federal Reserve buildings, with Powell claiming it’s retaliation for refusing to lower interest rates despite President Trump’s pressure.
Powell stated that the DOJ served the Fed with grand jury subpoenas, threatening a criminal indictment. He believes the investigation is a consequence of setting interest rates based on economic conditions rather than political preferences. Trump has repeatedly criticized Powell for not lowering rates sooner, and this investigation is the latest clash between the two.
The move has sparked concerns about the independence of the Federal Reserve, with some senators opposing Trump’s potential nominees until the investigation is resolved. Powell’s term as Fed chair ends in May, and Trump has already picked a potential successor.
