Federal Reserve Chair Jerome Powell has criticized a Department of Justice (DOJ) investigation into the Federal Reserve's $2.5 billion renovation project, describing it as an unprecedented form of political pressure. The investigation, which follows Powell's Senate testimony in June, involves grand jury subpoenas related to the renovation of historic Fed buildings in Washington, D.C. Powell emphasized that the project was fully disclosed and that the investigation is not about disclosure failures but rather a pretext for broader pressure on the Fed's independence.
Powell linked the investigation to disputes over interest rate policy, asserting that the Fed's decisions are based on economic data and public interest, free from political influence. The probe has sparked political reactions, with Senator Thom Tillis warning it could undermine the DOJ's independence and the stability of Fed leadership. Tillis, a member of the Senate Banking Committee, has vowed to block future Fed nominees until the investigation concludes. Meanwhile, the DOJ has stated that its focus is on cases involving taxpayer funds, without directly addressing Powell's comments.
Powell Criticizes DOJ Investigation into Fed Renovations as Political Pressure
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