US justice department opens criminal probe into Federal Reserve Chair Jerome Powell

BBC
BBC
5h ago
Federal prosecutors opened a criminal investigation into Federal Reserve Chair Jerome Powell over Senate testimony about Federal Reserve building renovations, and Powell said the action followed his refusal to lower interest rates despite Donald Trump’s public pressure.
US justice department opens criminal probe into Federal Reserve Chair Jerome Powell
A What happened
Jerome Powell said the US justice department opened a criminal investigation and served the Federal Reserve with subpoenas tied to his Senate testimony about renovations to Federal Reserve buildings. Powell called the probe unprecedented and said he believed it was opened because he drew Donald Trump’s ire by refusing to lower interest rates. Trump told NBC News he had no knowledge of the investigation and criticised Powell’s performance at the Fed and on building projects. Senator Thom Tillis and Senator Elizabeth Warren urged the Senate not to move forward on Trump nominees for the Federal Reserve while the matter remains unresolved.
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Key insights

  • 1

    Senators urged a pause on Federal Reserve nominations: Thom Tillis and Elizabeth Warren said the Senate should not proceed with Trump nominees for the Federal Reserve while the Powell legal matter remains unresolved.

  • 2

    Powell framed the probe as a test of central bank independence: Powell said the issue was whether interest-rate decisions will be based on evidence and economic conditions or directed by political pressure or intimidation.

  • 3

    Market reaction included a jump in precious metals: Gold and silver prices rose, with both metals hitting record highs during the period described.

Takeaways

A criminal investigation into Jerome Powell is underway, and political leaders and market participants reacted with warnings about institutional independence and a rise in precious metals prices.

Topics

Business & Markets Markets Economy World & Politics Governance Investigations Law & Public Safety Crime & Justice

Read the full article on BBC

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