"In an unusually combative statement, however, Powell called it a mere pretext. "This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings," Powell said. "The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.""
"The Fed has cut interest rates at each of its last three meetings. But President Trump has been outspoken in saying he wants much lower rates. Trump has threatened to fire Powell, whose term as chairman expires in May. He's also tried to remove another Fed board member, Lisa Cook, over unsubstantiated allegations of mortgage fraud. The Supreme Court has ruled that Cook can remain on the Fed's governing board, for now. It's set to hear arguments in the case later this month."
The Justice Department subpoenaed the Federal Reserve for information on the central bank's headquarters renovation; Powell said grand jury subpoenas received Friday threaten criminal indictments tied to his Senate testimony last June. Powell called the action a pretext and said the threat of criminal charges stems from the Fed setting interest rates based on its assessment rather than presidential preferences. The Fed cut rates at each of its last three meetings. President Trump has pushed for much lower rates, threatened to fire Powell, and sought removal of board member Lisa Cook; the Supreme Court allowed Cook to remain pending arguments later this month. Powell acknowledged legitimate scrutiny of cost overruns, which rose from $1.9 billion to $2.5 billion, and suggested an ulterior motive behind the probe.
Read at www.npr.org
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