Federal Reserve Chairman Powell Under Investigation by US Authorities

Federal Reserve Chair Jerome Powell has confirmed that the US Department of Justice has served the Federal Reserve with subpoenas related to testimony he provided before Congress regarding a $2.5 billion renovation project at the central bank’s headquarters in Washington, DC.

Powell stated that the investigation is centered on his testimony about the renovation project and its potential impact on the Fed’s independence in setting interest rates. He emphasized that the Federal Reserve sets interest rates based on its best assessment of what will serve the public, rather than following the preferences of the president.

The Department of Justice has issued subpoenas to Powell as part of a criminal investigation into his testimony. The investigation is reportedly related to concerns about the renovation project and its potential influence on monetary policy.

President Donald Trump’s administration has been critical of Powell over the cost and management of the Fed refurbishment project, which has run significantly over budget. Trump has also threatened to fire Powell over his refusal to cut interest rates faster.

In response to the investigation, US stock futures fell, with those tied to the benchmark S&P 500 dropping more than 0.4 percent in morning trading in Asia. The US dollar also declined about 0.2 percent against major currencies.

Powell has stated that he will continue to carry out his duties as Fed Chair without fear or favor and with a commitment to serving the American people. He emphasized that public service requires standing firm in the face of threats.

The investigation into Powell’s testimony is ongoing, and its outcome remains uncertain.

Source: Al Jazeera