Federal Reserve Chair Jerome Powell said that the US Federal Reserve was subpoenaed by the Justice Department. The prosecutors have opened a criminal investigation into Federal Reserve chair.
Speaking publicly, Powell explained that the subpoena came from the Justice Department when it was led by officials appointed by Trump. He did not provide many details about what information was requested or why the subpoena was issued.
The Federal Reserve is an independent institution that manages US monetary policy, including interest rates and inflation control. Subpoenas involving the Fed are rare and can raise concerns about political pressure on the central bank.
Powell emphasized the importance of the Fed’s independence and said the institution continues to operate separately from political influence.
The Justice Department has not commented on the subpoena, and it remains unclear whether the issue is still active or related to past investigations.
President Donald Trump denied on Sunday having any knowledge of the Justice Department's investigation into the Federal Reserve, following the agency's subpoena of the central bank on Friday.
“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,” Trump said of Federal Reserve Chair Jerome Powell in a brief interview with NBC News Sunday night.
Trump told NBC News that the Justice Department subpoenas have nothing to do with interest rates.
The Justice Department's investigation met with swift backlash from within the US Congress.
Republican Senator Thom Tillis of North Carolina, who is a member of the Banking Committee, said he will not vote to confirm any of Trump's nominees, including for the position of chair, for the Federal Reserve.
“I will oppose the confirmation of any nominee for the Fed, including the upcoming Fed Chair vacancy, until this legal matter is fully resolved. If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none,” he was quoted by NBC News as saying.
