He characterized the investigation as "unprecedented" and expressed confidence that it is a result of Trump's dissatisfaction with his refusal to lower the rate.
Powell emphasized: "The question is whether the Fed can continue to make decisions about interest rates based on economic data, or whether monetary policy will be subject to political pressure."
Regarding his respect for the rule of law and the importance of accountability in democracy, he also noted: "No one, including the Chair of the Fed, is above the law, but this unique event should be viewed in the context of pressure from the administration."
Meanwhile, in an interview with NBC News, Trump stated that he is not aware of the Justice Department's investigation into Powell.
"I'm not aware, but he is definitely not doing a good job at the Fed and doesn't know how to build buildings," Trump expressed his opinion about Powell.
Reasons for Trump's Discontent
The investigation, the details of which have not yet been confirmed by prosecutors, marks a new phase in the conflict between Trump and Powell, whom the president appointed as head of the Fed in 2017.Trump, promising his voters a lower interest rate during his campaign, has criticized Powell for his unwillingness to significantly lower the key rate and has called him a "total loser" and "Mr. Too Late" on social media.
It is important to note that the decisions of the Fed are made independently of the president, which is a fundamental principle of the central bank's operation.
Additionally, Trump has expressed dissatisfaction with the renovation of the Fed's headquarters, which costs $2.5 billion. Last week, the president mentioned in an interview with the New York Times that he is considering a new head of the Fed, with Trump advisor Kevin Hassett among the candidates for the position.
Renovation work on the Fed building began in 2022 and is expected to be completed by 2027. As noted by the NYT, the actual costs are expected to exceed the initial budget by $700 million.
The Fed claims that the major renovation of the headquarters has not been carried out since it was built in the 1930s. In particular, it is necessary to remove asbestos and lead contamination, as well as to ensure accessibility for people with disabilities.
However, as reported by the NYT, the renovation project includes private elevators and dining rooms for high-ranking officials, fountains, and new marble elements, as well as a terrace for employees.
At congressional hearings in June, Powell clarified that many of these elements did not make it into the final project: "There is no VIP dining room, no new marble. We removed the old marble, but we are putting it back."
