Federal Reserve Chair Jerome Powell Faces Criminal Investigation

Investigation Launched by the U.S. Department of Justice

Federal Reserve Chair Jerome Powell announced on Sunday that he is currently under a criminal investigation by federal prosecutors. In a video message, Powell stated that the Department of Justice has issued subpoenas and threatened a criminal charge related to his testimony before a Senate committee concerning the renovations of Federal Reserve buildings. He described the investigation as "unprecedented" and suggested it was triggered by Donald Trump’s irritation over Powell's refusal to lower interest rates, despite repeated public pressures from the President.

Powell remarked: "This concerns the Fed's ability to continue setting interest rates based on evidence and economic conditions, or whether monetary policy will be directed by political pressures or intimidation." He emphasized his profound respect for the rule of law and accountability in democracy, adding that "no one, certainly not the Chair of the Federal Reserve, is above the law."

In an interview with NBC News, Trump claimed he was not aware of the Justice Department’s investigation but criticized Powell's ability to manage the Fed and its building projects. This ongoing investigation, which has not been officially confirmed by prosecutors, could represent a new chapter in Trump's ongoing disputes with Powell. Amid this tension, Trump has repeatedly threatened to fire Powell, unsatisfied with the pace at which interest rates have been reduced.

Critics of Trump are concerned that his pressure to remove Powell could undermine the Federal Reserve's independence in setting interest rates without presidential influence. Senator Thom Tillis has stated he opposes any nominations by Trump to replace Powell until this legal matter is resolved.

The investigation against Powell will be supervised by the U.S. Attorney's Office in Washington, D.C., according to the New York Times, which first reported on this case. An explosion of precious metal prices has been observed against the backdrop of this investigation and unrest in Iran, with gold reaching a record $4,600.33 per ounce.