Powell calls federal probe an unprecedented attack on Fed's independence

Federal Reserve Chair Jerome Powell has issued a statement in response to a U.S. federal prosecutor's investigation into his conduct. He asserted that the probe is unrelated to his testimony or a building renovation, calling it a pretext for the Trump administration to pressure the central bank. Powell argued that the investigation paradoxically demonstrates the Fed has set interest rates for the public good, free from political influence or presidential considerations. He described the Department of Justice's actions, including issuing a subpoena and threatening indictment, as unprecedented. Powell stressed that the Fed is at a crossroads, facing a choice between continuing its evidence-based rate decisions or succumbing to political threats, framing the issue as a fundamental defense of the institution's independence.