As tensions remain high between the White House and the central bank, a Republican congresswoman is hitting Federal Reserve Chair Jerome Powell with a criminal referral to the Justice Department.

Washington

Federal Reserve Chair Jerome Powell has been referred to the Justice Department by Florida Republican Representative Anna Paulina Luna, who accuses him of lying under oath about the costs of Federal Reserve renovations during a Senate committee hearing. Luna also alleges Powell misrepresented the reasons for the price increase in a letter to the Office of Management and Budget.

This development occurs as the Treasury Secretary calls for a review of the Federal Reserve's operations, and amid public disagreements between the White House and the central bank over interest rate policy. President Trump has denied plans to remove Powell, despite ongoing pressure for rate cuts. Meanwhile, public opinion polls show many Americans are concerned about inflation and the administration's focus on tariffs.

Republican refers Powell to Justice Department for perjury charges

Well, as tensions remain high between the White House and the Central Bank, a Republican congresswoman is hitting Federal Reserve Chair Jerome Powell with a criminal referral to the Justice Department. Florida GOP Representative Anna Paulina Luna is accusing Powell of lying under oath about costly Federal Reserve renovations during a June 25th Senate committee hearing. She also claims he misrepresented reasons for the price increase in a letter sent to the Office of Management and Budget Director Russell Vought. Luna's filing comes as Treasury Secretary Scott Besant calls for a review of the entire Federal Reserve to examine its function and its success. Last week, President Trump denied White House reports that he was planning to fire the Fed Chair. Trump has repeatedly demanded that Powell lower U.S. despite inflation remaining above the Fed's 2 percent goal. CBS News Money Watch Correspondent Kelly O'Grady joins us now. Kelly, what does this very public disconnect between the White House and the Federal Reserve mean for economic policy? And if you could, just remind us why the Federal Reserve is not keen on lowering rates right now, at least. So I'll start with the second part of your question, Jerika. The Fed doesn't want to lower interest rates because they are concerned about the future impact of tariffs. And really, I'm thinking about the next three to six months. That's when economists say that we could see significant price increases and an impact on inflation because of all these tariffs that are existing now, and then also the higher tariffs that are set to go into August 1st. So the Fed basically wants to wait and see. They don't want to make any decisions preemptively that they might have to reverse. Now, what does all of this back and forth between the White House and the Fed have on economic policy? Nothing as of right now. The White House, the president can't technically fire Chair Powell without cause. But there can be a lot of pressure, whether it be investigations, whether it be Congress calling Chair Powell to an ad hoc hearing. So there could be a lot of optic pressure. And the concern is there could be steps taken with cause to fire him, which then you would see a change in economic policy very likely. So I want to turn to Howard Ludnick. On Face the Nation Sunday, the U.S. Commerce Secretary described a, quote, hard deadline for foreign nations to begin paying tariffs, but noted that trade negotiations could continue past this date. Listen to part of the conversation. We'll come back. They're going to open their markets or they're going to pay the tariff. And if they open their markets, the opportunity for Americans to export, to grow their business, farmers, ranchers, fishermen, this is going to be the next two weeks are going to be weeks for the record books. So for the record books, what does he mean by that? How soon could American businesses really feel the effects of trade deals reached in the coming days? So I'm taking for the record books to mean that we would see a number of trade deals get done. That being said, we have heard that same kind of rhetoric from the White House and members of the administration before. And at this point, we still only have a handful, handful, rather, of trade deals or frameworks in place in terms of how quickly American businesses could feel the impact. I mean, look, if a trade deal is done and American businesses are able to sell into these markets more than they would before, that is something that would likely be immediate or kind of a next few month timeline. On the flip side, American businesses that will have to pay those tariffs when you're importing goods into this country from other nations, they're also going to feel the impact of that immediately. They have to pay that when that good is coming across the border. Yeah, still waiting to see what the true effects are. A new CBS News poll finds that 70% of Americans don't think President Trump is focusing enough on lowering prices. When you think about that number, more than 60% think that he is focusing too much on implementing tariffs. How do the two balance out and what do these results tell you about the current priorities of the American consumer? It sounds like American consumers are focused on their pocketbook, just as they were at the last election, just as they likely will be come the midterm elections. There is a bit of a disconnect because the first six months of the president's term have actually been good when it comes to inflation. The concern is what comes next and that I think is where you see the perception that he's not focusing enough on prices. Because remember, the American people, they're not just thinking about these six months, they're thinking about the past five years and COVID and that high inflation and wages not keeping up. Yeah, and I know it'll be right after the holidays, so people will be fresh off of those credit card bills and feeling the effects of whatever, where we'll be six months from now. Kelly O'Grady, thank you so much.

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