President Donald Trump said a criminal probe into Federal Reserve Chairman Jerome Powell should continue, despite a Republican senator’s vow to block Trump’s Fed chair replacement pick unless the investigation is dropped.
U.S. Attorney for Washington Jeanine Pirro is leading the investigation of the central bank chairman, and she should “take it to the end and see,” Trump told reporters Monday in the Oval Office.
The president was asked if Pirro should abandon her efforts in light of Sen. Thom Tillis, R-N.C., declaring last week that he will oppose any new Fed nominee until the Powell investigation is fully resolved.
Tillis let his stand be known the same day that Trump, after a monthslong vetting process, announced that Kevin Warsh was his choice to succeed Powell as Fed chair, CNBC reported.
Powell Under Constant Attack
Tillis is a member of the Senate Banking, Housing, and Urban Affairs Committee, which has 13 Republicans and 11 Democrats. If Tillis sides with all Democrats on the panel in opposing Warsh, his vote could set up a stalemate that would prevent Warsh from advancing to a full Senate vote.
Powell revealed on Jan. 11 that he was under criminal investigation by the Department of Justice. Powell’s announcement came after months of Trump and his allies regularly attacking Powell over his refusal to lower interest rates as quickly or steeply as the president wants.
Powell, whose term as chair ends in May, accused the administration of threatening him with prosecution because the Fed, despite Trump’s pressure, has made its rate-setting decisions “based on our best assessment of what will serve the public, rather than following the preferences of the President.”
CNBC reported that the Fed has not yet complied with grand jury subpoenas issued as part of Pirro’s investigation.
Trump has repeatedly suggested that the yearslong, multibillion-dollar renovation of the Federal Reserve’s Washington headquarters involves either incompetence or corruption by Powell.
CNBC reported that the Fed has defended the renovation efforts, saying they will reduce costs for the central bank over time, and sought to explain cost increases. Powell has received support from many international central bank leaders and from politicians in the United States.
