Powell Sees Trump Vendetta in Fed Building Probe

Federal Reserve Chairman Jerome Powell took a defiant stance Sunday after federal prosecutors opened a criminal investigation into renovations at the central bank’s headquarters, Julia Ornedo reported for The Daily Beast.

Trump has claimed the total cost of the renovations rose to $3.1 billion, but Powell said those figures were incorrect. (Photo: Andrea Hanks, Trump White House Archived Flickr)

Powell, 72, released a rare video message after the Department of Justice served the Federal Reserve with grand jury subpoenas last week.

The New York Times reported that the US Attorney’s Office for the District of Columbia has opened a probe that includes a review of Powell’s public statements and an examination of spending records.

“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.”

He added: “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. This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether monetary policy will instead be directed by political pressure or intimidation.”

Trump has claimed the total cost of the renovations rose to $3.1 billion, but Powell said those figures were incorrect because they included the cost of a building that had already been completed years earlier.