The United States Justice Department has reportedly opened a criminal investigation into Federal Reserve Chairman, Jerome Powell, over statements he made during a Senate hearing, raising fresh concerns about the independence of the US central bank.
Powell disclosed that federal prosecutors issued subpoenas to the Federal Reserve, linked to his testimony on renovations to Fed buildings. Describing the probe as “unprecedented,” the Fed chair suggested it may be politically motivated, citing his long-running policy disagreements with President Donald Trump, particularly over interest rates.
Powell warned that the investigation could threaten the Federal Reserve’s ability to set monetary policy based on economic realities rather than political pressure. While affirming his respect for the rule of law, he said the timing of the probe raises serious questions.
President Trump denied prior knowledge of the investigation but renewed criticism of Powell’s leadership. Meanwhile, lawmakers from both parties have warned that the move could undermine the independence of the Federal Reserve.
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