White House Officials Express Frustration Over Powell Investigation
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White House officials are expressing frustration over the Department of Justice's investigation into Federal Reserve Chair Jerome Powell, citing concerns about its impact on the administration's agenda and the independence of the Federal Reserve.
White House officials have expressed frustration over the Department of Justice's (DOJ) criminal investigation into Federal Reserve Chair Jerome Powell, citing concerns about its impact on the administration's agenda and the independence of the Federal Reserve. The investigation, led by U.S. Attorney for the District of Columbia Jeanine Pirro, centers on Powell's congressional testimony regarding a $2.5 billion renovation of the Fed's headquarters.
The probe has drawn bipartisan criticism, with several Republican senators, including Thom Tillis and Lisa Murkowski, voicing opposition. Senator Tillis stated, "Until this matter is resolved, I'm not considering anybody," indicating a refusal to support any new Fed chair nomination until the investigation concludes.
Treasury Secretary Scott Bessent reportedly warned President Trump that the investigation could destabilize financial markets, noting that the probe had "made a mess" and could lead to market volatility.
Powell has characterized the investigation as a politically motivated attempt to pressure the Federal Reserve into lowering interest rates, asserting that the threat of criminal charges is a consequence of the Fed setting interest rates based on their assessment of public interest rather than presidential preferences.
U.S. Attorney Pirro defended the investigation, stating that her office had attempted to contact the Federal Reserve regarding alleged cost overruns and Powell's testimony but received no response, necessitating the use of legal process. She emphasized that the legal process is not a threat and expects full cooperation from the Federal Reserve.
The White House has denied directing the DOJ to investigate Powell. Press Secretary Karoline Leavitt stated that President Trump did not order the investigation, though she noted the President's dissatisfaction with Powell's performance.
The situation has raised concerns about the potential politicization of the Federal Reserve and its impact on economic stability, with critics warning that the investigation could undermine the central bank's independence and credibility.
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