"On Sunday, Powell revealed that the DOJ served the Fed with grand jury subpoenas, threatening a criminal indictment over his testimony before the Senate last June related to renovations on the headquarters, which has seen cost overruns. He called the allegations a pretext and said the investigation was really aimed at the Fed's ability to set interest rates without political pressure."
"But Republican Sen. Them Tillis agreed with Powell's assessment and instead pointed the finger at the DOJ. "If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none," he wrote in a post on X. "It is now the independence and credibility of the Department of Justice that are in question.""
"Powell's term as chair expires in May, and Trump has said he already has someone in mind to replace him who will lower rates further. But the DOJ investigation into Powell could blow up that process. "I will oppose the confirmation of any nominee for the Fed-including the upcoming Fed Chair vacancy-until this legal matter is fully resolved," Tillis said."
The Justice Department served the Federal Reserve with grand jury subpoenas related to Powell's Senate testimony about costly headquarters renovations, creating a potential criminal threat to Powell. Powell characterized the allegations as a pretext and said the probe targeted the Fed's ability to set interest rates free from political pressure. President Trump has long pressured Powell over rate decisions and has a preferred replacement; Powell's chair term ends in May. Senator Tillis said he will block any Fed confirmations until the legal matter is resolved and questioned DOJ independence. Powell's board term runs until 2028 and he could remain to protect Fed independence.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]