Justice department opens investigation into Jerome Powell as Trump ramps up campaign against Federal Reserve

"The Department of Justice has opened a criminal investigation into Jerome Powell and the Federal Reserve, a significant escalation in Donald Trump's extraordinary attack on the US central bank. In a blistering statement on Sunday, Powell argued he had been threatened with criminal charges because the Fed had set interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President."

"The US attorney's office in the District of Columbia has opened a criminal investigation into Federal Reserve chair Jerome Powell over the central bank's renovation of its Washington headquarters and whether Powell lied to Congress about the scope of the project, the New York Times reported on Sunday. The inquiry, which includes an analysis of Powell's public statements and an examination of spending records, was approved in November by Attorney Jeanine Pirro, the NYT reported citing officials briefed on the situation."

"This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditionsor whether instead monetary policy will be directed by political pressure or intimidation. I have served at the Federal Reserve under four administrations, Republicans and Democrats alike. In every case, I have carried out my duties without political fear or favor, focused solely on our mandate of price stability and maxim"

The Department of Justice opened a criminal investigation into Federal Reserve Chair Jerome Powell over the central bank's renovation of its Washington headquarters and whether Powell lied to Congress about the project's scope. The US attorney's office in the District of Columbia is examining Powell's public statements and spending records, and grand jury subpoenas were served. The inquiry was approved in November by Attorney Jeanine Pirro. Powell said the subpoenas threaten a criminal indictment related to his Senate testimony and warned the move risks politicizing monetary policy. Allies of Donald Trump had accused the Fed of mishandling the multibillion-dollar renovations and Trump repeatedly demanded legal action and faster rate cuts.

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