Trump claims he didn’t know anything about it.
By Wolf Richter for WOLF STREET.</h4
In a major escalation of Trump’s efforts to oust Powell and knuckle the Fed under, the Justice Department served the Fed with grand jury subpoenas and threatened Powell with a criminal indictment related to his testimony to Congress last June about the renovations of the historic buildings of the Federal Reserve in Washington, D.C.
This was first reported by the New York Times Sunday night, based on sources:
“The U.S. attorney’s office in the District of Columbia has opened a criminal investigation into Jerome H. Powell, the Federal Reserve chair, over the central bank’s renovation of its Washington headquarters and whether Mr. Powell lied to Congress about the scope of the project, according to officials briefed on the situation.
“The inquiry, which includes an analysis of Mr. Powell’s public statements and an examination of spending records, was approved in November by Jeanine Pirro, a longtime ally of President Trump who was appointed to run the office last year, the officials said.”
The criminal investigation was then confirmed by Powell in an extraordinary video statement, where he came out swinging. Here is his statement in full:
“Good evening.
“On Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June. That testimony concerned in part a multi-year project to renovate historic Federal Reserve office buildings.
“I have deep respect for the rule of law and for accountability in our democracy. No one—certainly not the chair of the Federal Reserve—is above the law. But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.
“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress’s oversight role; the Fed through testimony and other public disclosures made every effort to keep Congress informed about the renovation project. Those are pretexts. 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.
“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.
“I have served at the Federal Reserve under four administrations, Republicans and Democrats alike. In every case, I have carried out my duties without political fear or favor, focused solely on our mandate of price stability and maximum employment. Public service sometimes requires standing firm in the face of threats. I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people.
“Thank you.”
Upon which stock futures tanked, with Nasdaq futures -0.95% and S&P 500 futures -0.63% Sunday night.
Trump said in a brief interview on NBC News that he didn’t know anything about the investigation by the Justice Department:
“I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings.”
The pushback from Senate Banking Committee member Senator Thom Tillis, R-N.C., was swift. In a statement, he said that he’d oppose the confirmation of any nominee for the Federal Reserve Board of Governors, including the next chair, until this situation is resolved:
“If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none. It is now the independence and credibility of the Department of Justice that are in question.
“I will oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved.”
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“I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings.” sure just like Shaggy’s song It wasn’t me…either that or he will just say as many people are saying…
and the part about not very good at building buildings….man these people are just full of projection over and over again..
Yep there ya have it, renovations always go overbudget and over schedule…change orders rule the day. BTW I guess its ok the WH is being given a grand ballroom because its all private money yes?
I meant to add, show me a homeowner whose renovation didn’t take more time and money. BTW this was the renovation of an historic property I can only imagine what they found when they opened walls….I’ve been there and done that …building new is hard enough but renovation of an history building are impossible …
Following the Erdogan playbook of economics and politics.
Then again, Turkey’s inflation was all the way down to 30.9% in December YoY, so maybe we should copy them.
Hear, hear.
I would have sworn the Commander-In-Coins actually said, “Hey, look at me. I’m Sandra Dee!”. It’s gonna be real interesting if the GSR drops all the way to 10. It’ll be even more fascinating about an hour later when the dominant species on the planet goes toward coackroaches about as big as a Buick. Rational is apparently a form of sandwich meat they’re not planning on putting in the lunchboxes of Whirlled Leaders this week.
And there was me thinking a Roachmobile was an elongated hatchback.
From another person I follow“ The Party told you to reject the evidence of your eyes and ears. It was their final, most essential command” — George Orwell, 1984.~ wait until we liberate Greenland, maybe Canada after that.
“AI Overview
Gaslighting is a form of psychological manipulation where someone makes a person doubt their own reality, memories, or sanity, making them dependent on the manipulator for validation and control, often seen in abusive relationships but also in family, work, or friendships. The term comes from the play Gas Light, where a husband dims lights and denies it, making his wife think she’s going mad. Signs include constant self-doubt, confusion, always apologizing, feeling like you’re overreacting, and making excuses for the person, leading to low self-esteem and isolation.”
This is another example of the trend for executive branch overreach that did not start with Trump. At some point there will be attempts to dial it and him back. I think that we are at peak Trump and there will be increasing push back. I remember Watergate. It was the GOP loss of an off-year House replacement election for a Michigan safe seat that precipitated the party consensus that Nixon had to resign or face impeachment and removal. If the November elections are the GOP disaster that some anticipate occurs, there will be governmental paralysis. A frightened GOP will not protect Trump from removal.
Roman senators killed Julius Caesar, but nevertheless Rome descended into dictatorship. Indeed, if my understanding is correct, the very motivation behind separating the powers of government was to prevent such an eventuality. Be in no doubt, the gift of the founding fathers is in extreme peril.