(NewsNation) — Federal Reserve chair Jerome Powell accused the Trump administration of threatening him with a criminal indictment in an attempt to influence the independent central bank’s decisions on interest rates.
Powell, in a statement released Sunday, said the U.S. Department of Justice served subpoenas Friday on the Fed related to his testimony before the Senate Banking Committee last June on renovations at the Federal Reserve.
He called it a “pretext” designed to pressure him in his dispute with President Trump over the pace of cutting key interest rates. Powell has advocated a more cautious approach than what the president has pushed for.
“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,” Powell 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.”
In a statement to NewsNation, the DOJ said, “The Attorney General has instructed her US Attorneys to prioritize investigating any abuse of taxpayer dollars.”
Usually, presidents make a marked effort to respect the independence of the Fed, which describes itself as “an independent government agency” and “ultimately accountable to the public and the Congress.” That includes avoiding directly asking them to change their decisions or paying visits to the Fed.
Trump has consistently criticized Powell for slow-walking interest rate cuts and has accused the Fed chair of mismanaging renovations at the Federal Reserve. Powell has defended the project. His term as chairman ends later this year, but he serves on the Board of Governors until Jan. 31, 2028.
Sen. Thom Tillis, a North Carolina Republican, criticized the Trump administration Sunday.
“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,” he said on social media. “I will oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved.”
Senate Minority Leader Chuck Schumer, D-N.Y., said news about the Justice Department’s against Powell “is the kind of bullying that we’ve all come to expect from Donald Trump and his cronies. Anyone who is independent and doesn’t just fall in line behind Trump gets investigated.”
“Jay Powell and the Fed aren’t the reason Trump’s economy and his poll numbers are in the toilet. If he’s looking for the person who caused that he should look in the mirror,” he added.
Reuters and The Associated Press contributed to this report.