Federal Reserve Chief Jerome Powell Under Investigation by Trump Administration

Federal Reserve Board Chair Jerome Powell is Under Investigation by Justice Department

The US Department of Justice has launched a criminal investigation into Federal Reserve Board Chair Jerome Powell, according to reports. The investigation was approved in November and focuses on Powell’s oversight of the bank’s headquarters renovation project.

Powell stated that he is being criminally investigated, but President Donald Trump claimed not to know anything about it during an interview with NBC News. However, Trump has expressed his desire to oust Powell, who has been at odds with him over interest rates.

The investigation centers on allegations that Powell misled the US Congress about the renovation project’s cost and scope. The Federal Reserve began the project in 2021, which has cost $2.5 billion, exceeding the original budget by $600 million due to design changes, higher costs, and more asbestos than anticipated.

Powell’s term as chair ends in May, but he can remain as a Fed governor until January 2028. The investigation is part of a broader trend of Trump administration efforts to prosecute adversaries, including former FBI Director James Comey and New York Attorney General Letitia James.

The Justice Department has yet to comment on the investigation. Powell stated that “no one – certainly not the chair of the Federal Reserve – is above the law.” The White House did not respond to a request for comment.

A hearing on the Fed’s interest rates review meeting is scheduled for January 27-28. Trump previously mentioned considering a lawsuit against Powell, which could be related to claims of “gross incompetence” or “gross negligence.”

Source: Al Jazeera