U.S. federal prosecutors have announced the opening of a criminal investigation into Jerome Powell, Chairman of the Federal Reserve (Fed). The inquiry, the full details of which have not yet been disclosed by authorities, comes at a time of renewed debate over central bank independence and increasing political scrutiny of the Fed’s decisions.
The Office of the U.S. Attorney for the District of Columbia has opened an investigation to determine whether Jerome Powell may have misled members of the U.S. Congress regarding the scope and costs of a renovation of the Federal Reserve’s headquarters in Washington. The information was confirmed by officials with direct knowledge of the decision.
According to these sources, investigators are reviewing statements made by Powell to Congress concerning the central bank building’s modernization project, whose budget and scale have been the subject of political scrutiny. The aim is to determine whether there were omissions or inaccurate statements that could constitute legal irregularities.
The investigation represents a significant escalation in the long-running dispute between President Donald Trump and Jerome Powell. Trump has been a persistent critic of the Fed’s conduct of monetary policy, particularly regarding interest rate decisions, a core responsibility of the central bank of the world’s largest economy.
According to the British newspaper Daily Mail, officials familiar with the case said that both Powell and the Federal Reserve itself have already received subpoenas from a grand jury, a step indicating a deepening of the investigation and the seriousness of the suspicions under review.
Jerome Powell responded on Sunday night to the announcement of the criminal investigation against him, describing it as a “political attack” promoted by the current U.S. administration.
According to the head of the U.S. central bank, the threat of criminal charges is a direct retaliation for the Fed’s decisions on interest rates, which, he stressed, are taken based on technical criteria and in the public interest, rather than in line with the political preferences of the sitting president.
“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,” Powell said.
“This is about whether the Fed will be able to continue setting interest rates based on evidence and economic conditions, or whether monetary policy will instead be guided by political pressure or intimidation,” he added.
Source: O Telegrama
