Federal government launches investigation into Federal Reserve Chairman Jerome Powell

Federal Reserve Chair Jerome Powell has confirmed that his institution received grand jury subpoenas related to his testimony about renovations to the Fed’s headquarters in Washington, DC. In a statement on Sunday, Powell stated that the central bank had been served with these subpoenas.

Powell clarified that the Federal Reserve sets interest rates based on its assessment of what will serve the public, rather than following the preferences of the president. He emphasized that the threat of criminal charges is a consequence of this approach.

According to Powell, the grand jury subpoenas are related to his testimony about renovations to the Fed’s headquarters. The central bank’s independence and ability to set interest rates based on evidence and economic conditions are at issue.

Powell expressed concern that monetary policy may be directed by political pressure or intimidation rather than being guided by objective economic considerations. This statement suggests that Powell is concerned about the potential impact of external pressures on the Fed’s decision-making process.

Source: Al Jazeera