President Donald Trump said he wants the federal investigation into Federal Reserve Chair Jerome Powell to continue, brushing aside warnings that the probe threatens the independence of the U.S. central bank.
Trump Says Probe Should Continue
On Monday, speaking in the Oval Office, Trump was asked whether he would urge U.S. Attorney for the District of Washington Jeanine Pirro to drop the investigation into Powell, reported Business Insider.
Trump said he wanted her to “take it to the end and see.”
Trump again accused Powell of mismanaging funds related to renovations of the Federal Reserve’s headquarters, a project Trump has repeatedly criticized as excessively costly.
The investigation has involved grand jury subpoenas and carries the possibility of criminal charges.
Powell Warns Of Political Pressure
Powell said last month that the probe was intended to pressure the Fed into lowering interest rates.
“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,” Powell said in a video statement on Jan. 11.
The investigation marks the most serious escalation in Trump’s long-running attacks on Powell, whom he has publicly criticized over interest rates since his first presidential campaign.
Following the probe, central bank leaders from countries including Sweden, Switzerland, Australia and Canada issued an open letter supporting Powell, calling him a “respected colleague held in the highest regard.”
Trump Targets Fed, Powell Faces Legal Threat
Last month, Trump intensified his attacks on Powell, urging immediate interest rate cuts and accusing him of harming the U.S. economy and national security by keeping borrowing costs high.
Trump repeated his criticism at an Iowa rally, calling Powell slow and indecisive, and predicted rates would fall sharply under his successor, whom he plans to name after Powell steps down in May.
Powell had held rates steady at 3.5%–3.75%, stressing that future decisions would remain data-driven and independent of political pressure.
The feud escalated when the Justice Department threatened the Fed with a potential criminal indictment over its headquarters renovation.
Economist Justin Wolfers called the move unprecedented, warning it resembled authoritarian tactics and raised risks of future political interference, though markets reacted cautiously amid uncertainty.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Image via Shutterstock/ Joshua Sukoff
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