Jerome Powell Accuses Trump Administration of Intimidation

DOJ Launches Criminal Investigation Related to Interest Rates

Federal Reserve Chairman Jerome Powell has criticized the Trump administration following a new criminal investigation, arguing that it represents a last-ditch attempt to undermine the central bank's independence regarding interest rates. Powell stated on Sunday that the accusations are "a consequence of the Federal Reserve setting interest rates based on the best assessment of what will serve the public, rather than on the President's preferences."

The U.S. Attorney for Washington, D.C., launched a criminal investigation on Friday against Powell concerning renovations at the agency’s headquarters and whether he misled Congress about the size of the project, as reported by The New York Times. President Donald Trump has consistently attacked Powell's policies and the Federal Reserve for refusing to comply with his demands for rate cuts. Trump has threatened to take legal action regarding the renovations of the Federal Reserve building and has stated he would fire Powell.

Powell, whose term as Federal Reserve Chairman ends in May, remarked that the criminal investigation "is about whether the Federal Reserve will be able to continue setting interest rates based on evidence and economic conditions - or if, instead, monetary policy will be directed by political pressure or intimidation."