WASHINGTON (dpa-AFX) - The Chair of the Federal Reserve, Jerome Powell has hit out at President Donald Trump after revealing that the U.S. Department of Justice has served the agency with grand jury subpoenas and threatened a criminal indictment against him.
This action is related to a testimony Powell gave before the Senate Banking Committee last June. That concerned in part a multi-year project to renovate historic Federal Reserve office buildings.
Powell described the probe as 'unprecedented' and said he believes it stems from Trump's anger over the Fed's refusal to cut interest rates, despite repeated public pressure from him to do so.
'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 in a statement on Sunday, the latest in the long-running feud between Trump and Powell.
'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,' he added.
In the strongly worded statement, Powell recalled that while serving at the Federal Reserve under four administrations, Republicans and Democrats alike, he carried out his duties 'without political fear or favor, focused solely on our mandate of price stability and maximum employment'. Stating that Public service sometimes requires standing firm in the face of threats, the American banking czar vowed 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 Federal Reserve, the central banking system of the United States, is responsible for setting monetary policy and maintaining financial stability. This latest development has raised concerns about the independence of the institution and the potential for political interference.
Trump said he is not aware of the investigation.
'I don't know anything about it, but he's certainly not very good at the Fed, and he's not very good at building buildings,' he said, referring to Powell, in an interview with NBC News on Sunday.
A massive renovation continues on The Federal Reserve's two buildings, the Eccles and 1951 Constitution Avenue buildings.
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