Federal Reserve Chair Jerome Powell: “Public service sometimes requires standing firm in the face of threats”
Prosecutors have launched a criminal investigation into the $2.5 billion renovation of the central bank’s headquarters in Washington, D.C.
Federal Reserve Chairman Jerome Powell responded to accusations of wrongdoing with a criminal inquiry underway, looking into the massive renovation cost of the central bank’s headquarters in Washington, D.C.
The renovation project, which includes a complete overhaul of the Fed’s historic Marriner S. Eccles Building and its adjacent Federal Reserve East Building, was approved in 2021 with work starting the following year. However, for one reason or another, it has run way over budget. Originally slated to cost $1.9 billion, costs have ballooned to $2.5 billion - placing the Fed, and Powell in the firing line.
Pirro behind criminal investigation into Fed spending
An investigation into why renovation costs had overrun by over 30 percent was reportedly opened by U.S. Attorney for the District of Columbia Jeanine Pirro in November. Former Fox News star Pirro just also happens to be a close friend of President Donald Trump, which makes Powell think that he is being deliberately targeted for personal reasons.
The investigation will include a full audit of where the $2.5 billion has been spent along with an analysis of everything Powell has publicly said about the project. Trump claims to know nothing about the subpoenas issued by the DOJ but has stated that the cost of revamping Fed headquarters is excessive. “He’s certainly not very good at the Fed, and he’s not very good at building buildings,” Trump told NBC.
Powell says he is being targeted over interest rates
Powell responded with a video statement on Sunday evening, in which he alluded to threats he has received and is being pressured and punished by the Trump Administration for the Fed’s hesitancy in cutting interest rates.
“On Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June. That testimony concerned, in part, a multi-year project to renovate historic Federal Reserve office buildings,” Powell began.
“I have deep respect for the rule of law and for accountability in our democracy. No one-certainly not the Chair of the Federal Reserve-is above the law. But this unprecedented action should be seen in the broader context of the Administration’s threats and ongoing pressure.
“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress’s oversight role. The Fed, through testimony and other public disclosures, made every effort to keep Congress informed about the renovation project.
“Those are pretexts. 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. This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether, instead, monetary policy will be directed by political pressure or intimidation.
“I have served at the Federal Reserve under four Administrations-Republicans and Democrats alike. In every case, I have carried out my duties without political fear or favor, focused solely on our mandate of price stability and maximum employment. Public service sometimes requires standing firm in the face of threats.
“I will continue to do the job the Senate confirmed me to do-with integrity and a commitment to serving the American people,” he ended.
Trump denies that the DOJ’s subpoenas are effectively a way to put pressure on the Fed to cut interest rates further. “No. I wouldn’t even think of doing it that way. What should pressure him is the fact that rates are far too high. That’s the only pressure he’s got.”
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