Why is Trump investigating Fed Chair Jerome Powell?
Asked 7 hours ago
Answer
President Trump is investigating Fed Chair Jerome Powell over allegations related to Powell's testimony about a costly Federal Reserve office renovation. Powell and others assert the probe is a pretext to undermine the Fed's independence in setting interest rates, with concerns it is politically motivated and could impact global confidence in U.S. monetary policy.
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U.S. opens criminal investigation into Fed Chair Jerome Powell
- Justice Department serves subpoenas and threatens criminal indictment over Powell's testimony
- Trump criticizes $2.5 billion Fed building renovation as excessive 19s
- Powell says criminal threat is a pretext to undermine Fed independence 27s
- Powell insists Fed kept Congress informed about renovation project 44s
- Subpoenas raise concerns about Fed independence and investor confidence 1m 28s
References
President Trump escalated his dispute with the Fed by criticizing the $2.5 billion renovation project as excessive, prompting the DOJ investigation into Powell's testimony. Powell stated the threat of criminal charges is a pretext to undermine the Fed's independence in setting interest rates.
The investigation centers on Powell's Senate testimony about the Federal Reserve Board's office renovations, which President Trump claimed were too expensive. Powell stated the probe and possible criminal indictment test the Fed's independence amid ongoing administration pressure.
Powell explained the threat of criminal charges is not about the renovation or congressional oversight, but rather about the Federal Reserve's independence in setting interest rates based on economic conditions, not presidential preferences or political intimidation.