(USA, 12th) — Federal Reserve Chairman Jerome Powell said in a video statement on the 11th that the criminal investigation by prosecutors against him is an "excuse" to undermine the Fed's "independence" in setting interest rates.
He said: "This is about whether the Fed can still set interest rates based on evidence and economic conditions—or, whether monetary policy will be subject to political pressure or coercion."
He confirmed that the Department of Justice has issued a subpoena to the Fed and threatened to bring criminal charges against him over his testimony regarding the renovation of the Fed's headquarters.
The New York Times reported on the 11th that federal prosecutors have launched a criminal investigation into Powell, relating to the renovation project of the Fed's office building and whether Powell made false statements to Congress about the scale of the project.
The New York Times reported on the 11th that federal prosecutors have launched a criminal investigation into Powell, relating to the renovation project of the Fed's office building and whether Powell made false statements to Congress about the scale of the project.
Citing informed officials, the report says the investigation is being led by the U.S. Attorney's Office for the District of Columbia, and includes an analysis of Powell's public remarks and an audit of spending records. The investigation was approved in November last year.
The report added: "This investigation marks the start of a new round of significant legal offensives against Powell."
U.S. President Trump has continuously attacked Powell for refusing his demand for steep rate cuts. Although Trump himself nominated Powell as Fed Chairman in 2017, he has threatened to fire Powell and, citing "incompetence," hinted at a possible lawsuit against Powell over the $2.5 billion (about 10.2 billion ringgit) renovation project.