Prosecutors open criminal probe into Fed Chair Powell amid political tensions

WASHINGTON (TNND) — Federal prosecutors announced that they have opened a criminal investigation into Jerome Powell, the chair of the U.S. Federal Reserve.

Powell responded to the announcement on Sunday night, claiming that the criminal probe was a “political hit job” by the current administration.

‘The threat of criminal charges is 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,’ he said.

‘This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions – or whether instead monetary policy will be directed by political pressure or intimidation.’

According to officials who have been briefed on the decision, the U.S. Attorney’s Office for the District of Columbia is looking into whether Powell misled members of Congress over the scope and cost of a renovation of the Fed’s headquarters in Washington.

This investigation dramatically escalates President Trump’s long fight with Powell, who controls the US’ interest rates.

According to the Daily Mail, officials familiar with the investigation said Powell and the Federal Reserve have been served with grand jury subpoenas.

Trump has already told The New York Times that he has already decided whom he wants to replace Powell with, and is expected to announce his choice soon.