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House Democrats Call for Inquiry Into Federal Reserve Chair Investigation
House Democrats are pushing for a congressional investigation into what they describe as a “sham criminal investigation” targeting Federal Reserve Chairman Jerome Powell. Led by Representative Jamie Raskin of Maryland, the top Democrat on the House Judiciary Committee, and Representative Jared Moskowitz of Florida, the Democrats have formally requested Chairman Jim Jordan to open a probe into the matter.
In their letter, the lawmakers characterize the Department of Justice’s investigation as “a flagrant attempt by the President to bully and intimidate the Board” into adjusting interest rates according to “the President’s own whims” rather than economic conditions or public interest. They further labeled it a “systematic assault on the independence of our central bank.”
The Democrats are seeking a public hearing and have suggested potentially subpoenaing Attorney General Pam Bondi and other DOJ officials to testify about the investigation.
U.S. Attorney for the District of Columbia Jeanine Pirro is leading the probe into Powell. Pirro has publicly accused the Fed Chairman of not cooperating with her office’s information requests. In a statement on social media platform X, Pirro said, “The United States Attorney’s Office contacted the Federal Reserve on multiple occasions to discuss cost overruns and the chairman’s congressional testimony, but were ignored, necessitating the use of legal process—which is not a threat.”
Pirro also disputed Powell’s characterization that he faced imminent criminal charges, stating, “The word ‘indictment’ has come out of Mr. Powell’s mouth, no one else’s.”
In a public statement on Sunday, Powell claimed the DOJ was “threatening a criminal indictment related to my testimony before the Senate Banking Committee last June.” However, he suggested the investigation was actually motivated by the Fed’s independence in setting interest rates despite President Donald Trump’s public pressure to lower them more rapidly.
The investigation reportedly centers on Powell’s congressional testimony regarding renovations to the Federal Reserve’s historic building, though specific details remain unclear.
The situation has created rare bipartisan concern on Capitol Hill. House Financial Services Committee Chairman French Hill, a Republican from Arkansas, stated that pursuing criminal charges related to testimony about building renovations creates “an unnecessary distraction” when the nation’s economy requires focus.
President Trump has denied direct involvement in initiating the investigation during an interview with NBC News, though he added that Powell is “certainly not very good at the Fed, and he’s not very good at building buildings.” In a separate interview with Reuters on Wednesday, Trump indicated he had no current plans to remove Powell from his position.
The conflict highlights the tension between the traditionally independent Federal Reserve and the executive branch. The Fed’s ability to set monetary policy without political interference has long been considered crucial to economic stability and market confidence. Powell was originally appointed to the Federal Reserve Board by President Barack Obama in 2012 and was later elevated to Chairman by President Trump in 2018.
The White House has directed questions about the Democrats’ letter to the Department of Justice, while Pirro’s office has declined to comment. Representative Jordan’s office had not yet responded to requests for comment at the time of reporting.
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12 Comments
The Fed chair plays a critical role in managing the economy. Any attempt to undermine their independence should be taken seriously and investigated thoroughly. Protecting the central bank’s integrity is vital.
Absolutely. Maintaining the Fed’s credibility and non-partisan status is essential for effective monetary policymaking.
As someone who follows the commodities and mining sectors, I’m interested to see how this investigation unfolds. The Fed’s policies have a big impact on these industries, so maintaining its integrity is crucial.
Absolutely, the Fed’s decisions on interest rates, inflation, and monetary policy have major implications for commodity producers and investors. This bears close watching.
As an investor, I’m closely watching this situation. The independence of the Fed is crucial for economic stability. I hope the investigation provides clarity on what occurred and any potential ramifications.
Absolutely, the Fed’s credibility and ability to act impartially is essential for financial markets. This bears close monitoring.
This is concerning if true. The independence of the Federal Reserve is crucial to maintaining stable monetary policy. I hope the investigation is conducted fairly and transparently, without political interference.
Agreed, the Fed must remain independent from political pressure. Hopefully the investigation uncovers the full truth behind this matter.
This seems like a concerning abuse of power if the allegations are true. The Fed chair must be able to make decisions based on economic conditions, not political pressure. A thorough, impartial investigation is warranted.
Agreed, the independence of the Fed is critical. Any attempt to undermine that could have serious repercussions for the economy.
This is a troubling development. The politicization of the Fed could have serious consequences for financial markets and the broader economy. I hope the investigation gets to the bottom of what transpired.
Agreed, the integrity of the Fed must be preserved. Any undue political influence over its operations is extremely concerning.