"The Department of Justice's threat to criminally indict Federal Reserve Chair Jerome Powell has set up a tense showdown between the White House and the U.S. central bank, with Powell saying the subpoenas that arrived on Friday are intended to force him to follow President Donald Trump's orders."
"The subpoenas apply to the cost of renovating Fed buildings, including its marble-clad headquarters in Washington, DC, but they are more fundamentally about the fate of the Fed's independence, how power is distributed within the federal government, and how it will effect the U.S. economy."
"I have carried out my duties without political fear or favor, focused solely on our mandate of price stability and maximum employment. Public service sometimes requires standing firm in the face of threats."
The Justice Department issued subpoenas tied to renovation costs, threatening potential criminal indictment of Federal Reserve Chair Jerome Powell and provoking a confrontation with the White House. The subpoenas raise core questions about Fed independence, separation of powers, and potential economic consequences for jobs and consumer lending. Republican senators and former Fed chairs expressed concern, and economists warned of risks to the broader economy. President Trump has pressured the Fed to dramatically cut benchmark interest rates, while Powell says inflation remains elevated and the Fed has acted cautiously. Powell's chair term ends in May, but his governor term runs through January 2028.
Read at ABC7 Los Angeles
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