(AP Photo/Alex Brandon)
Federal Reserve chair Jerome Powell announced on Sunday President Donald Trump’s The Department of Justice is warning of potential criminal charges as a result of the Federal Reserve determining interest rates based on its best judgment for the public good, rather than aligning with the president’s desires.
Powell delivered the statement ina two-minute video.He mentioned that the Department of Justice delivered grand jury subpoenas to the Federal Reserve on Friday concerning his testimony before the Senate Banking Committee last year regarding the multi-year renovation of the Fed’s building.
Shortly after his announcement, The New York Times reportedA police inquiry into Powell had begun:
The U.S. Attorney’s Office in the District of Columbia has initiated a criminal probe into Jerome H. Powell, the head of the Federal Reserve, concerning the renovation of the central bank’s Washington headquarters and whether Mr. Powell provided false information to Congress about the project’s extent, according to sources who are aware of the matter.
His statement follows President Trump’s remarks to reporters in late December, where he mentioned he was thinking about filing a lawsuit against Powell. for “gross incompetence.”
The president stated he intended to take legal action against Powell due to the escalating costs of renovating the Federal Reserve building. Trump mentioned that the expenses had surpassed $4 billion — approximately$1.5 billion above the forecast.
It will ultimately cost more than $4 billion — $4 billion! It’s the most expensive construction ever,” Trump stated. “Once again, Democrats — the highest construction cost per square foot in world history. Beautiful landmarks are constructed for a much lower price. So we’re considering filing… what’s known as a gross negligence lawsuit.
The leader stated it was entirely appropriate, given that the project was Powell’s “own creation.”
This is a developing news story and will be updated.
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