Federal Reserve Chair Powell says Justice Department grand jury subpoenas threaten independent interest rate setting

Federal Reserve Chair Jerome H. Powell issued a statement after the Department of Justice served the Federal Reserve with grand jury subpoenas that he said threaten a criminal indictment related to his June testimony before the Senate Banking Committee on a multi-year renovation of historic Federal Reserve office buildings. Powell argued the subpoenas were not driven by the renovation project or congressional oversight, saying the Federal Reserve had sought to keep Congress informed through testimony and other public disclosures. He framed the threat of criminal charges as retaliation for setting interest rates based on evidence and economic conditions rather than the President’s preferences, and said he would continue to carry out his Senate-confirmed duties focused on price stability and maximum employment.