DOJ Investigation of Fed Chair Powell Sparks Backlash

The Trump administration’s criminal investigation of Federal Reserve Chair Jerome Powell appeared on Monday to be emboldening defenders of the U.S. central bank that President Donald Trump wants to bring under his sway.

The backlash reflected the bigger stakes of a contest about the fate of the Fed’s independence, the balance of power within the federal government, and the path of the U.S. economy. Trump has long publicly lashed out against Powell for not slashing the Fed’s benchmark interest rates to his liking, but the prospect of a criminal indictment was a step too far for an institution that has an out-sized influence on both inflation and the job market.

Several Republican senators have condemned the Department of Justice’s (DOJ) subpoenas of the Fed, which Powell revealed Sunday and characterized as a “pretext” to pressure him to sharply cut interest rates as Trump has demanded. Powell also said the DOJ has threatened criminal indictments over his June testimony to Congress about the cost and design elements of a building renovation.

Please select this link to read the complete article from The Associated Press.