US President Donald Trump said he was unaware of the US Justice Department’s investigation into the Federal Reserve, a day after the agency issued subpoenas to the central bank.
Speaking to NBC News on
Sunday, Trump criticised Federal Reserve Chair Jerome Powell, saying he was “not very good at the Fed” and also questioned his role in overseeing the renovation of the central bank’s office buildings.
Trump’s comments came on the heels of Powell’s strong-worded statement, calling the criminal probe into the Federal Reserve’s $2.25 billion headquarter renovation project a ‘pretext’ and seeing in the broader context of the “administration’s threats and ongoing pressure.”
“No one, including the Federal Reserve Chair, is above the law,” Powell said. However, he described the move as unprecedented and said it must be viewed in the context of sustained pressure from the administration.
The development comes after months of public criticism from Trump over the Fed’s interest rate policy. Powell said he believes the investigation is linked to the central bank’s refusal to cut rates under political pressure.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on what it believes is best for the public, rather than political preferences,” Powell said.
Trump, however, denied any link between the investigation and interest rates, saying the subpoenas had “nothing to do” with monetary policy. He said rates were “far too high” and claimed that public pressure, not political pressure, was influencing Powell.
The probe triggered strong reactions in Congress. Republican Senator Thom Tillis, a member of the Senate Banking Committee, said he would block the confirmation of any Federal Reserve nominee until the matter is resolved.
“If there was any doubt that the administration is trying to undermine the Fed’s independence, there should be none now,” Tillis said.
Democratic Senator Elizabeth Warren also criticised the move, accusing Trump of misusing the Justice Department to bring the Federal Reserve under political control. She said the Senate should not move ahead with confirming any Trump nominee to the Fed, including the chair.
Powell’s term as Fed Chair ends in May, though he will remain a member of the Federal Reserve Board until 2028.
