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Powell: Under Investigation for Linking Fed's Rate to Economic Assessment, Not Political Will
BlockBeats News, January 12th, Federal Reserve Chair Powell responds to criminal investigation. Powell stated that the U.S. Department of Justice threatened criminal prosecution last Friday regarding his June testimony to the Senate, which involved the renovation of the Fed's headquarters. A grand jury subpoena was delivered last Friday. The new threat is unrelated to his testimony or the renovation project; it is just an excuse. The potential criminal charges stem from the Fed basing its interest rates on economic assessment rather than political will. The key question going forward is whether the Fed's rate decisions will continue to be evidence-based or succumb to political influence and coercion.
Powell stated that he has consistently carried out his duties impartially and will continue to do so. While respecting legal authority, facing criminal charges is unprecedented, signaling a broader threat from the current U.S. administration to the Fed.
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