Trump opens investigation against Fed chairman after criticizing him for not lowering rates

The chairman of the United States Federal Reserve, Jerome Powellrevealed this Sunday that faces a Justice Department investigation related to his testimony before Congress last June regarding the multimillion-dollar renovation of the agency’s headquarters. Powell has framed this action in “threats and constant pressure” from the Donald Trump Administration, very critical of Powell in recent months for not lowering interest rates enough.

“On Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening criminal charges related to my testimony before the Senate Banking Committee last June. That testimony referred, in part, to a multi-year project to renovate the Federal Reserve’s historic office buildings,” he said in a video posted on the organization’s account on the social network X.

Powell, who has assured to maintain a “deep respect for the rule of law and accountability“, has considered the investigation against him as an “unprecedented action” by Washington, which “must be seen in the broader context of threats and constant pressure from the Government.” US President Donald Trump, He has been harshly criticizing Powell for months for his refusal to lower interest rates enough. The president advocates that his successor, who must take over in May, commit to a monetary policy aligned with his opinions.

Powell denounces pressure from the Trump Administration

““No one, certainly not the chairman of the Federal Reserve, is above the law.”noted in a speech in which he asserted that “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 president’s preferences.”

“This new threat has nothing to do with my testimony last June or the renovation of the Federal Reserve buildings. It has nothing to do with the oversight function of Congress“, he assured before defending that the organization has informed Congress about this matter through “testimonies and other public disclosures.” “Those are pretexts,” he added.

Instead, he reiterated, “it’s about whether the Federal Reserve will be able to continue setting interest rates based on evidence and economic conditions, or whether, On the contrary, monetary policy will be conditioned by political pressure or intimidation.

Powell has highlighted his work at the head of the Fed during four administrations of both the Republican and Democratic Parties, in which he has “performed my duties without fear or political favor, focusing 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 perform the position for which the Senate confirmed me, with integrity and commitment to serving the American people,” he stated. Trump has insistently advocated lowering interest rates at all costs to reduce the federal government’s financing costs and boost private sector activity.