WASHINGTON: US Federal Reserve Chair Jerome Powell said on Sunday (Jan 11) the Trump administration has threatened him with a criminal indictment over Congressional testimony he gave last summer, sending subpoenas to the Fed on Friday in what he called a “pretext” aimed at furthering pressure on him in a dispute with President Donald Trump over interest rates.
“On Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June,” Powell said in a statement on Sunday night.
The Fed chief said that the threat was not about his testimony or about the renovation of the Federal Reserve buildings.
“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 said.
Powell, in his statement, also said that “no one – certainly not the chair of the Federal Reserve – is above the law”.
“But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
“I have served at the Federal Reserve under four administrations, Republicans and Democrats alike.
“In every case, I have carried out my duties without political fear or favour, focused solely on our mandate of price stability and maximum employment,” he said.
Powell added that public service sometimes requires “standing firm in the face of threats” and that he will continue to do the job the Senate confirmed him to do, with integrity and a commitment to serving the American people.
The New York Times had reported on Sunday that the US attorney’s office in the District of Columbia had opened a criminal investigation into Powell over the central bank’s renovation of its Washington headquarters and whether Powell lied to Congress about the scope of the project.
The inquiry, which includes an analysis of Powell’s public statements and an examination of spending records, was approved in November by Attorney Jeanine Pirro, the NYT reported, citing officials briefed on the situation.