Federal prosecutors have opened a criminal investigation into Federal Reserve Chairman Jerome Powell, he revealed on Sunday.
In a video announcing the probe, Powell stated that the US Justice Department had served the agency with subpoenas and threatened a criminal indictment over testimony he provided to a Senate committee regarding renovations to Federal Reserve buildings.
He labeled the investigation as unprecedented and suggested it stems from his refusal to lower interest rates under pressure from former President Donald Trump, who has previously expressed dissatisfaction with Powell's performance.
This marks the latest instance of a federal investigation targeting individuals who have come into conflict with Trump. Powell asserted that the investigation poses a significant question: whether the Federal Reserve will remain capable of making decisions based on economic conditions, or if they will be swayed by political intimidation.
Trump has denied knowledge of the ongoing Justice Department investigation, stating that he views Powell unfavorably, criticizing his ability to manage the Federal Reserve.
Critics are viewing the investigation as a potential challenge to the independence of the Federal Reserve, an institution that Trump has repeatedly attempted to pressure or dismiss, particularly for not making swift adjustments to interest rates as he desired.
North Carolina Senator Thom Tillis has voiced his opposition to any Fed Board nominee replacing Powell until the legal situation is resolved, underscoring concerns about diminishing the independence of the Federal Reserve.
This development accompanies noteworthy fluctuations in the financial market, evidenced by escalating prices for precious metals, indicative of heightened uncertainty stemming from the investigation.
