Federal Reserve Chair Jerome Powell will face criminal investigation over building renovation projects.
According to The Guardian, in another major escalation of the US central bank from President Donald Trump, the Department of Justice has launched a criminal probe into Powell over his last year’s June testimony to Congress about the central bank’s Washington, D.C., headquarters’ $2.5 billion renovation.
The US Attorney’s Office in the District of Columbia opened an investigation to find whether Powell misled Congress about the scope of the renovation project.
Powell, in a fiery statement on Sunday, January 11, claimed that he has been threatened with the criminal charges because Fed had set interest rates “based on our best assessment of what will serve the public, rather than following the preferences of the president.”
He insisted that the legal action was “not” about his testimony. “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead monetary policy will be directed by political pressure or intimidation,” he added.
Powell stressed that he served at the central bank under four administrations, Republicans and Democrats both, and in every case, he has carried out his duties without any political fear or favour, focusing solely on the goal of “price stability and maximum employment.”
Furthermore, the Trump administration has long accused the Fed of mishandling the billions of dollars in renovations. They have also placed a close ally on the Federal Reserve's board of governors and attempted to remove Lisa Cook, a Biden appointee.
