Federal Reserve Chairman Jerome Powell is embroiled in a criminal investigation by the Department of Justice, marking a significant escalation in the ongoing feud between Trump and the Fed. According to sources, Powell's alleged transgression involves lying to Congress about the renovation costs of the Federal Reserve building in Washington D.C.
Powell had previously stated that the cost of renovating the building was approximately $5 million, but an investigation has revealed discrepancies in his testimony. The Chairman attributed the discrepancy to a misinterpretation of the Fed's interest-rate policy, which is at odds with Trump's economic agenda.
"This case is about whether the Fed will continue to set interest rates based on evidence and economic conditions, or if they will be influenced by political pressure or intimidation," Powell said in a video statement. The investigation is seen as an attempt to protect the independence of the Fed from what critics perceive as undue influence from politicians.
The Attorney General's office has confirmed that it is investigating "any abuse of taxpayer dollars" – a clear reference to the disputed renovation costs. Trump, however, has denied any involvement in the case, stating that Powell "is certainly not very good at the Fed and he's not very good at building buildings."
Despite his denials, critics argue that Trump's actions are part of a broader effort to undermine the credibility of the Fed and shape its policy decisions to suit his own economic agenda. The development has sent shockwaves through Congress, with several lawmakers vowing to block Powell's nomination as Fed Chairman until the matter is resolved.
Senator Thom Tillis, a Republican from North Carolina, described the situation as "a serious attack on the independence of our Department of Justice." Senator Elizabeth Warren, a Democrat from Massachusetts, accused Trump of orchestrating a "corrupt takeover" of the Fed. The case has sparked debate about the limits of executive power and the role of politics in monetary policy.
Powell had previously stated that the cost of renovating the building was approximately $5 million, but an investigation has revealed discrepancies in his testimony. The Chairman attributed the discrepancy to a misinterpretation of the Fed's interest-rate policy, which is at odds with Trump's economic agenda.
"This case is about whether the Fed will continue to set interest rates based on evidence and economic conditions, or if they will be influenced by political pressure or intimidation," Powell said in a video statement. The investigation is seen as an attempt to protect the independence of the Fed from what critics perceive as undue influence from politicians.
The Attorney General's office has confirmed that it is investigating "any abuse of taxpayer dollars" – a clear reference to the disputed renovation costs. Trump, however, has denied any involvement in the case, stating that Powell "is certainly not very good at the Fed and he's not very good at building buildings."
Despite his denials, critics argue that Trump's actions are part of a broader effort to undermine the credibility of the Fed and shape its policy decisions to suit his own economic agenda. The development has sent shockwaves through Congress, with several lawmakers vowing to block Powell's nomination as Fed Chairman until the matter is resolved.
Senator Thom Tillis, a Republican from North Carolina, described the situation as "a serious attack on the independence of our Department of Justice." Senator Elizabeth Warren, a Democrat from Massachusetts, accused Trump of orchestrating a "corrupt takeover" of the Fed. The case has sparked debate about the limits of executive power and the role of politics in monetary policy.
! like, I don't know how much more drama we can take with trump trying to control every single thing, including the fed's interest rates 
. Powell's integrity is being questioned because of a $5m renovation deal that went awry 
, but now it's all about who's behind the scenes manipulating things... Trump denies any involvement, but come on, we've seen his track record 
. The fed's independence is at stake here 
, and I'm genuinely worried that our economy will suffer if politicians start dictating monetary policy 
. What do you guys think? Should we be concerned about the impact of this scandal? 
he's trying to control everything, even the interest rates 
we need transparency and honesty in our institutions, not all this backroom dealmaking 
like, dude, you're one to talk what's with all these controversies around u? 
. So, basically, the head of the Federal Reserve, Jerome Powell, is being investigated by the DOJ for lying about how much it cost to renovate their office building? That's wild 
. What if he succeeds in getting what he wants and then there are problems down the line because of it?
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this is crazy! like, I get it, Trump's all about control and stuff, but the fact that Jerome Powell's being investigated for lying to Congress is wild 
.
. And now Powell’s in hot water because he allegedly lied about it... it’s all getting pretty sketchy 
. It’s not like the Fed is controlled by him or anything 
.
It’s like, the economy is supposed to be about growing jobs and stuff, not who's in charge of the Federal Reserve 
i mean, the guy who's supposed to be running the show is the one getting taken to task? it doesn't sit right with me 
), but it seems like there's some pretty shady stuff going on here. Powell's got his work cut out for him, trying to keep the Fed's independence intact 
. Can't say I trust anyone in this situation... 
. But seriously, this could be a major test of Trump's leadership... will he back down or keep trying to strong-arm Powell? We'll have to wait and see!
. If politicians start interfering with the Fed's decisions, it could have serious consequences down the line 
. Maybe we need to have a bigger conversation about how all these pieces fit together? 
seriously though, it sounds like trump is trying to exert his influence over the fed and that's just not cool. i think powell should be able to do his job without being intimidated by political pressure 
. this whole thing has me worried about the state of our country, you know? 
what's next? is trump gonna start making decisions for the fed like it's his personal playground?