Criminal Investigation Launched Against Jerome Powell as Trump Escalates War with Fed
The US Department of Justice has opened a grand jury investigation into Jerome Powell, Chairman of the Federal Reserve, amid allegations that he lied to Congress about a renovation project at the central bank's historic office buildings in Washington DC. The probe is seen as a significant escalation in Donald Trump's campaign against the Fed and its chairman.
According to reports, the Department of Justice has issued grand jury subpoenas to the Federal Reserve, targeting Powell over the renovation project, which was deemed a multibillion-dollar undertaking by Trump allies last year. Trump had repeatedly threatened legal action against the Fed and Powell, accusing them of mishandling the project.
In response to the investigation, Powell argued that he was targeted for his testimony before the Senate banking committee in June last year, where he discussed the renovation project's scope. The Fed, according to Powell, set interest rates based on its best assessment of what would serve the public, rather than following Trump's demands for rapid rate cuts.
The probe is part of a broader effort by Trump to curtail the Fed's independence and exert greater control over its decisions. In November, Attorney Jeanine Pirro approved the investigation, which includes an analysis of Powell's public statements and an examination of spending records.
Powell maintained his integrity in the face of the legal threat, stating that he would continue to carry out his duties without fear or favor, focused solely on maintaining price stability and maximum employment. The chairman acknowledged that public service sometimes requires standing firm in the face of threats but emphasized his commitment to serving the American people.
The investigation has raised concerns about the limits of executive authority and the rule of law. As Powell's term as chair is due to expire in May, the probe may influence who succeeds him on the Fed's board of governors, potentially leading to significant changes in monetary policy.
The central bank had started to cut rates by the time Trump returned to office last year but was unable to meet his demands for rapid rate cuts. The Fed ultimately lifted interest rates to their highest level in two decades to combat inflation, which surged to its highest level in a generation after the pandemic.
As tensions between the White House and the Federal Reserve continue to escalate, Powell's future at the helm of the central bank remains uncertain.
The US Department of Justice has opened a grand jury investigation into Jerome Powell, Chairman of the Federal Reserve, amid allegations that he lied to Congress about a renovation project at the central bank's historic office buildings in Washington DC. The probe is seen as a significant escalation in Donald Trump's campaign against the Fed and its chairman.
According to reports, the Department of Justice has issued grand jury subpoenas to the Federal Reserve, targeting Powell over the renovation project, which was deemed a multibillion-dollar undertaking by Trump allies last year. Trump had repeatedly threatened legal action against the Fed and Powell, accusing them of mishandling the project.
In response to the investigation, Powell argued that he was targeted for his testimony before the Senate banking committee in June last year, where he discussed the renovation project's scope. The Fed, according to Powell, set interest rates based on its best assessment of what would serve the public, rather than following Trump's demands for rapid rate cuts.
The probe is part of a broader effort by Trump to curtail the Fed's independence and exert greater control over its decisions. In November, Attorney Jeanine Pirro approved the investigation, which includes an analysis of Powell's public statements and an examination of spending records.
Powell maintained his integrity in the face of the legal threat, stating that he would continue to carry out his duties without fear or favor, focused solely on maintaining price stability and maximum employment. The chairman acknowledged that public service sometimes requires standing firm in the face of threats but emphasized his commitment to serving the American people.
The investigation has raised concerns about the limits of executive authority and the rule of law. As Powell's term as chair is due to expire in May, the probe may influence who succeeds him on the Fed's board of governors, potentially leading to significant changes in monetary policy.
The central bank had started to cut rates by the time Trump returned to office last year but was unable to meet his demands for rapid rate cuts. The Fed ultimately lifted interest rates to their highest level in two decades to combat inflation, which surged to its highest level in a generation after the pandemic.
As tensions between the White House and the Federal Reserve continue to escalate, Powell's future at the helm of the central bank remains uncertain.
Powell's integrity is lookin good tho, he's standin firm despite the threats. Fingers crossed he gets to finish his term w/o any drama 
the fed's independence is being questioned again i wonder how many times this has happened in the past and how many times it will happen again? 
... On one hand, you've got to wonder if there's any truth to the allegations of Powell lying to Congress 
. But at the same time, it does seem like Trump's trying to intimidate Powell and try to exert more control over the Fed's decisions 
.
... I just hope that no matter who ends up chairing the Fed next, they can keep making choices in the best interests of the American people 
. It's not going to be easy with Trump trying to strong-arm them 
!
. If Trump's actions are successful in undermining the Fed's autonomy, it could lead to a destabilization of the financial system.
. As he said, serving the American people is not about fear or favor, but about upholding the principles of public service. Let's hope that the investigation ultimately proves to be a mere distraction and doesn't succeed in undermining the Fed's credibility 
The thing is, Powell's got some serious explaining to do about that renovation project, but I think he's being pretty reasonable about it all. I don't see how Trump's claims of lies are gonna fly, though... it's just a bunch of noise if you ask me 
Still, gotta admit, it's a pretty brazen move by Jerome Powell to tell Congress (and the DoJ) that he's been targeted for this. I mean, you'd think he'd at least try to spin it as 'Trump trying to intimidate me' or something, but nope, just straight-up ownership of the whole thing 
. But seriously, the Fed's independence is what keeps our economy stable, so fingers crossed they can weather this storm 
. And can we talk about how weird it is that Powell's term is ending in May? It's like the universe is just trying to make a joke at Trump's expense 
. And now this investigation thingy is like, totally unnecessary 
. I mean, Powell did say he was truthful in his testimony, but at this point it feels like Trump is trying to bully him into doing what he wants 
. The Fed's got a lot of power and influence, so if Trump can somehow manage to mess with their internal workings... that'd be bad news 