"The criminal investigation involving Powell is tied to his Senate testimony in June 2025 about cost overruns for renovations to the Fed's headquarters. No charges have been announced, but a criminal indictment is possible. In a video posted Sunday on the Fed's website, Powell said the renovation issue is a pretext and that the investigation is aimed at undermining the Fed's independence, particularly its ability to set interest rates without political pressure."
"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, Powell said. President Donald Trump has repeatedly criticized Powell for not cutting rates more aggressively. Trump has said that after Powell's term as chair expires in May, he plans to replace him with someone more willing to lower rates."
Department of Justice independence is in question amid a criminal investigation tied to Jerome Powell's June 2025 Senate testimony on Fed headquarters renovations. No charges have been announced, but an indictment is possible. Powell said the inquiry is a pretext aimed at undermining the Fed's independence and its ability to set interest rates without political pressure. Powell said the threat of charges stems from the Fed setting rates based on public-interest assessments rather than presidential preferences. Trump has criticized Powell for not cutting rates and plans to replace him in May; Powell could remain on the Fed board until 2028. Democrats condemned the subpoenas and urged halting action on Fed nominees.
Read at www.housingwire.com
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