The U.S. Attorney's Office in the District of Columbia has opened a criminal investigation into Federal Reserve Chairman Jerome Powell over the renovation of the agency's headquarters in Washington and allegations that Powell lied about the scale of the project, The New York Times reports, citing officials familiar with the matter.
According to them, the investigation, which includes an analysis of Powell's public statements and a review of expense reports, was approved in November by U.S. Attorney Jeanine Piro for the District of Columbia. The Times notes that Piro is a “longtime ally“ of President Donald Trump, and the investigation is “a major new legal front“ vs. Powell.
Powell himself, in a statement posted on the Federal Reserve's website, said the Justice Department had issued grand jury subpoenas to the Federal Reserve on Friday, "threatening criminal charges related to my testimony before the Senate Banking Committee last June," which included the renovation of the Federal Reserve's headquarters.
“I deeply respect the rule of law and accountability in our democracy. No one, certainly not the chairman of the Federal Reserve, is above the law. But these unprecedented actions must be seen in the broader context of the administration's threats and ongoing pressure, Powell said.
According to him, the Justice Department's actions are not related to the renovation of the Fed building or Powell's testimony to Congress, but are a consequence of the Fed conducting monetary policy based on its assessment of what "serves the public interest, not the president's preferences." "The question is whether the Fed can continue to set interest rates based on evidence and economic conditions, or whether monetary policy will be driven by political pressure or intimidation," Powell said.
He pledged to continue serving at the Fed and "serve the American people with integrity and pride."