Fed’s Powell says DOJ probe reflects ‘pressure’ over rate policy independence

Federal Reserve Chair Jerome Powell said a Justice Department investigation should be viewed in the context of mounting political pressure over the Fed’s interest rate independence.

Federal Reserve chair Jerome Powell has blasted the Trump administration over a new criminal investigation, arguing it’s the latest attempt to destroy the central bank’s independence on interest rates.

Powell said on Sunday that the investigation 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.”

The US attorney for Washington, DC, opened a criminal investigation into Powell on Friday over the agency’s renovation of its headquarters and whether Powell lied to Congress about the size of the project, The New York Times reported on Sunday.

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