"He said in a statement Sunday that the Justice Department of 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. Powell, who is typically cautious in his public remarks, was clear that the probe was political in nature and had nothing to do with the Fed renovations or his testimony, calling them "pretexts.""
""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," he wrote. "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.""
The Federal Reserve received grand jury subpoenas from the Justice Department that threaten criminal indictment tied to testimony about headquarters renovation cost overruns. The subpoenas were described as politically motivated and characterized as pretexts unrelated to the renovations or testimony. The threat of criminal charges was framed as retaliation for setting interest rates according to economic evidence rather than following presidential preferences. The Fed emphasized adherence to its dual mandate of price stability and maximum employment and asserted a commitment to continue setting monetary policy based on evidence and economic conditions despite political pressure.
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