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Powell says DOJ served Fed with grand jury subpoenas

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Credit: Federal Reserve

Federal Reserve Chair Jerome Powell said the Department of Justice has served the Federal Reserve with grand jury subpoenas that could lead to criminal charges related to his prior testimony to Congress.

In a statement released Sunday, Powell said the subpoenas were delivered Friday and could lead to criminal charges tied to his testimony before the Senate Banking Committee last June, which addressed a multi-year renovation project at Federal Reserve office buildings.

“No one—certainly not the chair of the Federal Reserve—is above the law,” Powell said. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”

Powell rejected the premise of the investigation, saying it is not about his testimony or congressional oversight.

“Those are pretexts,” he said. “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.”

“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation,” Powell added.

The investigation is being overseen by the U.S. Attorney’s Office for the District of Columbia, according to reporting cited by CNBC. That office is led by Jeanine Pirro, who was appointed by President Donald Trump.

Trump has repeatedly demanded that the Fed cut interest rates and has publicly criticized Powell when it has not done so.

Powell testified last summer about cost overruns tied to the Fed’s headquarters renovation, with the projected cost rising from $1.9 billion to $2.5 billion.

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