Republicans question DOJ probe into Fed Chair Powell

Political pushback is growing over the Justice Department’s criminal investigation into Federal Reserve Chairman Jerome Powell, with several Republican lawmakers voicing concerns.

(NBC)- Political pushback is growing over the Justice Department’s criminal investigation into Federal Reserve Chairman Jerome Powell, with several Republican lawmakers voicing concerns.

Senator John Kennedy of Louisiana defended Powell, saying he would be “stunned” if the Fed chair had done anything wrong.

Powell confirmed that the Federal Reserve has been subpoenaed in connection with his congressional testimony in June. That testimony focused on costly, pre-planned renovations to the Fed’s headquarters in Washington, D.C., which increased from $1.9 billion to $2.5 billion. While the project is not funded by taxpayer money, President Trump has sharply criticized the cost overruns.

At the same time, the president has repeatedly pressured Powell to lower interest rates.

“Well, I’d love him to lower interest rates,” Trump said.

Powell suggested that political pressure over interest rate decisions is the true source of the criminal inquiry, emphasizing the Fed’s independence.

“Setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said.

In a joint statement, all living former Federal Reserve chairs and several former Treasury secretaries warned that the Justice Department’s investigation threatens the Fed’s independence and could harm the U.S. economy and worsen inflation.

The White House has denied that President Trump sought the investigation. Trump told NBC News he would not pressure Powell through legal means, adding that the only pressure Powell should feel is that interest rates are “far too high.”

U.S. Attorney for Washington, D.C., Jeanine Pirro, said her office contacted the Federal Reserve to discuss the renovation cost overruns and Powell’s testimony but was ignored, which she said “necessitated the use of legal process.”