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Republican Senator Suggests Powell Resign to End Justice Department Probe
North Dakota Republican Senator Kevin Cramer has proposed that Federal Reserve Chair Jerome Powell should consider resigning to potentially end the Department of Justice’s criminal investigation into his conduct, suggesting the move could benefit all parties involved.
“If you’re the attorney for Jay Powell and you want to avoid an indictment, how about you go to Jeanine Pirro and say, ‘I’ll make a deal. I’ll step down today, if you’ll drop the investigation today,'” Cramer said during an appearance on FOX Business’ “Kudlow” program on Tuesday. The senator characterized his proposed strategy as “a win-win for everybody.”
The DOJ announced on Sunday that it had launched a criminal probe examining the renovation of the Federal Reserve’s Washington headquarters. The investigation centers on whether Powell provided truthful testimony to Congress about the project, which is expected to cost approximately $2.5 billion. The Fed has noted that the renovation is being financed by the central bank rather than taxpayer funds.
In an unprecedented development, Powell confirmed in a video statement that the Federal Reserve had received “grand jury subpoenas” threatening “a criminal indictment.” While acknowledging his respect for the rule of law and congressional oversight, Powell characterized the Justice Department’s actions as politically motivated.
“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings,” Powell stated. He suggested the criminal investigation was 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.”
U.S. Attorney for the District of Columbia Jeanine Pirro defended her office’s approach on social media, writing on Monday that prosecutors had reached out to 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 further noted, “The word ‘indictment’ has come out of Mr. Powell’s mouth, no one else’s. None of this would have happened if they had just responded to our outreach.”
The investigation has sparked concern among some lawmakers about its potential economic impact. Senator Cramer expressed worry about the possible consequences of an indictment on the U.S. economy, which he described as an “incredible rocket ship” that shouldn’t be disrupted. “We’ve got other big things to do that I’d rather focus on than an indictment,” he added.
The unprecedented nature of a criminal probe into a sitting Federal Reserve chair has sent ripples through financial markets and Washington policy circles. The Federal Reserve, as the nation’s central bank, operates independently of political influence by design, with its chair serving a four-year term. Powell, initially appointed by former President Trump and later reappointed by President Biden, has led the institution since 2018.
The investigation comes at a sensitive economic moment as the Federal Reserve navigates the complex challenge of bringing inflation under control while avoiding a recession. Financial analysts have expressed concern that political pressure on the Fed could undermine market confidence in the institution’s independence.
When contacted by reporters, a spokesperson for the Federal Reserve indicated they had no comment beyond Powell’s Sunday video message. The U.S. Attorney’s Office for the District of Columbia has not provided additional details about the investigation’s timeline or potential outcomes.
The unusual situation represents a rare moment of vulnerability for the typically insulated Federal Reserve, an institution whose decisions on interest rates and monetary policy have far-reaching effects throughout the global economy.
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9 Comments
The timing of this probe is curious, given the Fed’s key role in addressing high inflation. I hope the investigation is not being used for political purposes.
Maintaining public trust in the Fed’s integrity is vital. Any issues should be addressed transparently, without undue pressure on the chair.
This seems like a politically-motivated attempt to undermine the Fed chair. Unless there is clear evidence of wrongdoing, I’m skeptical of calls for Powell’s resignation to avoid a potential indictment.
Agreed. The Fed’s independence is crucial for effective monetary policy. Any investigation should be thorough and impartial before drawing conclusions.
While oversight of the Fed is important, calls for Powell’s resignation seem hasty. Let’s wait for the facts before jumping to conclusions about potential indictment.
I’m concerned this is a partisan attack on the Fed’s independence. Unless clear evidence of wrongdoing emerges, we should let the investigation run its course without undue pressure on Powell.
While I’m open to hearing more details, this seems like an attempt to undermine the Fed’s leadership during a challenging economic period. We should let the justice system run its course objectively.
Calls for Powell’s resignation seem premature. The DOJ investigation should be allowed to proceed without political interference. The Fed chair’s decisions have major impacts, so rigorous oversight is warranted.
The timing of this probe raises questions. The Fed chair’s role is critical for monetary policy stability. I hope the investigation is thorough and impartial, not politically motivated.