"It's a little hard to know what exactly the motivations are behind this, but my expectation is that it's not going to have an impact on policy,"
"My expectation is that decisions are going to be made based on employment and inflation."
"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,"
"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."
DOJ is investigating Fed Chair Jerome Powell over testimony related to renovations of Federal Reserve buildings. Powell says the probe is a pretext to exert influence on monetary policy and warns that criminal charges threaten Fed independence by pressuring rate decisions. Goldman Sachs chief economist Jan Hatzius expects the investigation will not affect Fed policy and believes rate decisions will be determined by employment and inflation. Goldman Sachs revised its forecast, now expecting two 25-basis-point rate cuts in June and September. President Trump has criticized Powell and threatened legal action for "gross incompetence."
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