Federal Reserve Chairman Jerome Powell said that US prosecutors have opened a probe into his comments to lawmakers and threatened an indictment, a move he said is part of President Donald Trump‘s pressure campaign on monetary policy decisions.
“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 added in a statement that the bank received grand jury subpoenas on Friday, “threatening a criminal indictment” related to his Senate testimony in June, which concerned a major renovation project of Federal Reserve office buildings.
He dismissed the possible threat of indictment over his testimony or the renovation project as “pretexts.”
Trump has consistently pressured Powell and the central bank to move faster in lowering interest rates, in a breach of the long-standing independence of the institution. (AFP)
