President Donald Trump said Thursday that the Department of Justice should continue its investigation into Federal Reserve Chairman Jerome Powell, possibly delaying further the confirmation of Powell’s intended successor, Kevin Warsh.
“He’s under investigation because he’s building a building for hundreds of billions of dollars more than it’s supposed to cost,” Trump said of Powell in the Oval Office, CNBC reported.
Trump was referring to ongoing renovations of the Federal Reserve’s Washington, D.C, headquarters, which is reported to be the focus of the DOJ investigation of the central bank chairman led by U.S. Attorney Jeanine Pirro.
In January, Powell accused the government of launching the probe in retaliation for his refusal to lower interest rates as much or as quickly as Trump has demanded.
On Wednesday, Powell said that he would not leave the Fed’s board of governors until the investigation was “well and truly over” with “transparency and finality.“
Powell Undecided About Staying on Board
Powell also said he has not decided whether to depart before his term as governor ends, even if the probe is resolved.
“I have not made that decision yet,” Powell said at a press conference following the board’s vote to hold interest rates steady. “I will make that decision based on what I think is best for the institution and for the people we serve.”
Powell’s term as Fed chair ends in May. His term as governor lasts until 2028.
Earlier this month, subpoenas issued to the Federal Reserve as part of the DOJ criminal investigation were blocked by a federal judge.
In his ruling, Federal Judge James Boasberg blocked subpoenas issued to the Federal Reserve as part of the criminal investigation.
“Did prosecutors issue those subpoenas for a proper purpose? The Court finds that they did not,” Boasberg wrote.
“There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will,” the judge wrote.
“On the other side of the scale, the Government has offered no evidence whatsoever that Powell committed any crime other than displeasing the President,” Boasberg wrote in the ruling.
Senator Vows to Block Warsh
The ruling came as Sen. Thom Tillis, R-N.C., continued to vow that he would block Warsh’s nominaton as chair. Tillis has said he will not lift that block until the investigation of Powell is resolved.
Tillis said recently in a statement on X, “This ruling confirms just how weak and frivolous the criminal investigation of Chairman Powell is and it is nothing more than a failed attack on Fed independence.”
“We all know how this is going to end and the D.C. U.S. Attorney’s Office should save itself further embarrassment,” Tillis wrote.
