Federal prosecutors have opened a criminal investigation into Federal Reserve Chair Jerome Powell over his testimony on the Federal Reserve’s ongoing renovation of its headquarters.
In a statement released Sunday, Powell acknowledged that the Department of Justice issued subpoenas related to his testimony before the Senate Banking Committee last year.
The Trump administration has engaged in an ongoing pressure campaign against Powell over the central bank’s pace of lowering interest rates.
“I have deep respect for the rule of law and for accountability in our democracy. 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 argued that the subpoena is not about his testimony last June or the renovation of the buildings in Washington, D.C. but rather 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.”
President Donald Trump has for months criticized Powell, who he nominated to the position in 2017, for not lowering the rates faster.
At its last three meetings, the Fed has cut rates by 0.25 percentage points and the current federal funds rate ranges from 3.50% to 3.75%.
In an interview with NBC News on Sunday evening, the president said he didn’t know about the legal action against Powell, but said he is “certainly not very good at the Fed, and he’s not very good at building buildings.”
Powell noted in his statement that he’s served under four presidential administrations, including both Republican and Democratic leadership. In each case, he’s performed his job without fear of political retribution, he said.
“Public service sometimes requires standing firm in the face of threats,” Powell said. “I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people.”
The New York Times noted that officials said the investigation includes an analysis of Powell’s statements to the Senate committee and the Fed’s spending records. It was approved by Trump’s ally Jeanine Pirro, who was appointed to run the U.S. Attorney’s Office in D.C.