Federal prosecutors have opened a criminal investigation into Federal Reserve Chairman Jerome Powell, he said on Sunday.
In a video announcing the probe, Powell stated that the U.S. Justice Department served the agency with subpoenas and threatened a criminal indictment concerning his testimony before a Senate committee regarding renovations to Federal Reserve buildings.
He referred to the investigation as unprecedented, suggesting it stemmed from him drawing the ire of Donald Trump by refusing to lower interest rates despite repeated public pressure from the former president.
The Fed chair is yet another figure to clash with Trump and subsequently face a criminal inquiry from the U.S. Justice Department.
Powell expressed concern, stating, 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. He emphasized the importance of the rule of law and accountability in democracy.
Trump commented in an NBC News interview that he had no knowledge of the investigation into Powell but critiqued his performance at the Fed.
The probe signals a new escalation in the ongoing dispute between Trump and Powell, who was nominated by Trump as Fed chair in 2017.
As reported, the investigation will be overseen by the U.S. Attorney's Office for the District of Columbia.
Concerns about Trump's continued pressure on the Federal Reserve have reached lawmakers, with North Carolina Senator Thom Tillis indicating his opposition to any Fed nominee from Trump while the investigation is ongoing.
Senator Elizabeth Warren has also condemned Trump's actions, alleging an intention to install a more compliant figure at the Fed. The criminal probe's initiation has already impacted the markets, with precious metals like gold and silver seeing a rise, reflecting investor uncertainty.
