Powell responds to US Justice Department subpoenas over Senate testimony
Jerome H. Powell, Chair of the Federal Reserve System, announced that on Friday the US Department of Justice issued grand jury subpoenas to the Federal Reserve, threatening criminal prosecution related to his testimony before the Senate Banking Committee last June. The testimony concerned a multiyear project to renovate the Federal Reserve’s historic office buildings.
Powell emphasized his deep respect for the rule of law and accountability in democracy, stating that neither he nor the Federal Reserve stands above the law. However, he called these DOJ actions unprecedented and linked them to a broader context of threats and ongoing pressure from the administration. He clarified that the new threat is not directly tied to his last year’s testimony or the building renovations but relates to Congressional scrutiny of the Fed’s public statements and continued political pressure.
This development highlights growing tensions between the Federal Reserve and US government agencies. What happens next could affect the Fed’s independence and its ability to function free from external interference.
