US EditionFederal prosecutors open criminal investigation into the Fed and Jerome Powell
The DOJ probe scrutinizes Powell's truthfulness about a $2.5 billion Fed HQ renovation amid political pressure over interest rates, threatening a criminal indictment, Fed says.
- On Friday, the Department of Justice served grand‑jury subpoenas to the Federal Reserve and its chair, opening a criminal investigation overseen by Jeanine Pirro, U.S. Attorney in D.C., The New York Times reported.
- During a Senate hearing last June, Powell discussed the renovation project, disputing claims it exceeded $3 billion and saying it was closer to $2.5 billion and self-funded by the Federal Reserve.
- Powell wrote `That testimony concerned in part a multi-year project to renovate historic Federal Reserve office buildings`, emphasizing `I have deep respect for the rule of law and for accountability in our democracy` to defend the investigation, which he called `pretexts`.
- On Jan 12, the U.S. dollar fell and gold rose to a record after the report as the U.S. dollar index dropped 0.3% to 98.899 and gold hit US$4,563.61 an ounce.
- Powell's second term ends in May, and the White House could nominate a successor next month, while Sen. Thom Tillis, R-N.C., said he will withhold votes until the legal matter is resolved.
219 Articles
219 Articles
The U.S. Justice has launched an investigation into the head of the Federal Reserve, Powell. Powell made the case public in a video message himself. He accused President Trump's government of trying to create an excuse to undermine the Fed's independence. The U.S. dollar declined.
Fed Boss Powell Under Pressure: Investigation for Construction Project and Key Interest Rate Dispute
For months, US Federal Reserve Chief Powell has had to accept massive criticism from US President Trump. Now, the judiciary is taking action against the head of the independent central bank.
The U.S. Department of Justice has opened a criminal investigation into Federal Reserve Chairman Jerome Powell regarding renovations to the Fed's headquarters. Many observers point out that this case indicates Trump's intent to exert significant pressure on the Fed.
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