Federal Reserve Chair Cites Interest Rate Disputes as Backdrop to DOJ Probe

Federal Reserve Chair Jerome Powell indicated that a criminal investigation launched by the US Department of Justice (DOJ), which includes grand jury subpoenas related to the Fed's headquarters renovation, is politically motivated. Powell argued this action is linked to the central bank's refusal to align its interest-rate policy with the President's preferences, viewing it as part of sustained pressure and threats. He stressed that the Fed has kept Congress informed about the renovation and asserted that the threat of criminal charges stems from setting rates based on economic assessment rather than presidential preference. Meanwhile, President Donald Trump, who has previously criticized Powell for not cutting rates aggressively enough and whose term is nearing expiration, denied knowledge of the DOJ probe, claiming any pressure should only relate to high interest rates. Trump is reportedly close to selecting a successor for Powell, with candidates like Kevin Hassett being leading contenders.

(Source：BeInCrypto)