Summary
President Donald Trump's administration has launched a criminal investigation into Federal Reserve Chair Jerome Powell concerning the costs of building renovations, which the president has criticized. Kevin Hassett, a top economic advisor in the White House, commented on the probe, noting it is a legal matter concerning the Fed's independence. Meanwhile, several lawmakers have voiced concerns, criticizing the investigation as a potential threat to the central bank's independence.
Key Facts
- The Trump administration started a criminal probe into the Federal Reserve Chair Jerome Powell.
- The investigation focuses on Powell's testimony about the high costs of Fed building renovations.
- President Trump has criticized the Fed for not lowering interest rates faster, which he believes affects the economy.
- Kevin Hassett, a White House economic advisor, emphasized respecting the independence of the Fed and the Justice Department.
- Some lawmakers, both Democrats and Republicans, criticized Trump for the probe as a threat to the Fed's independence.
- Senator Elizabeth Warren and Senator Thom Tillis were among those voicing concern, with Warren calling it an abuse of power.
- Jerome Powell responded with a statement defending the Fed's independence in setting interest rates based on economic conditions.
