Federal Reserve Chairman Jerome Powell released a video statement on Sunday night denying criminal wrongdoing shortly after the Department of Justice opened an investigation into him.
Powell appeared on camera to directly address the inquiry, which concerns Senate testimony he gave last year about renovations at the Fed headquarters building in Washington, D.C. Powell slammed the investigation as an “unprecedented action” that “should be seen in the broader context of the administration’s threats and ongoing pressure.”
“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings,” he said. “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president.”
Powell later warned about the potential ramifications of the case, saying it’s “about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation.”
He added that as chairman, his decisions were made “without political fear or favor, focused solely on our mandate of price stability and maximum employment.”
“Public service sometimes requires standing firm in the face of threats. I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people,” Powell concluded.
Powell’s defense and him revealing the case itself marks a stunning turn in what has been a testy relationship between Powell and President Donald Trump.
Despite appointing Powell to the chairmanship during his first term, Trump has hounded Powell about his interest rate decisions throughout his second term, arguing they should be lower. The Fed cut rates three times last year, though not until the fall.
The two also clashed during a tour of the Fed headquarters in Washington, D.C., last summer. Appearing before reporters then, Trump expressed concern about the cost overruns and pinned them at $3.1 billion. Powell denied they were that high, claiming Trump “added in a third building” to inflate the estimate.
Powell’s term ends in May, after which Trump will name a replacement. It is unclear how quick the investigation will be and if it could lead to Powell’s ouster before then. As president, Trump can remove anyone on the Fed board “for cause,” though there is debate over how far that extends.
DOJ LAUNCHES CRIMINAL INVESTIGATION INTO JEROME POWELL
Asked about the investigation on Sunday night, Trump claimed he knew nothing about it.
“I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” the president told NBC News.
