The United States Federal Reserve has been subpoenaed by the Department of Justice, the central bank's chairman Jerome Powell revealed in a statement on Sunday.
He said the Trump administration threatened him with a criminal indictment over congressional testimony he gave last summer regarding a Federal Reserve building renovation project.
Powell called the move a "pretext" to put further pressure on the central bankto lower interest rates faster than Fed officials deem appropriate.
"I have deep respect for the rule of law and for accountability in our democracy. No one — certainly not the Chair of the Federal Reserve — is above the law," Powell said in the brief statement released by the US Fed.
He emphasized that this unprecedented action must be viewed within the broader context of the administration's threats and continuous pressure.
"This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress's oversight role. Those are pretexts," Powell said.
"This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation," he alleged.
While the White House has not responded to Powell's statement, Trump insisted he did not know about the investigation. In an interview to NBC News on Sunday, when asked if the investigation was meant to pressure the Fed to lower rates, Trump said: "No. I wouldn't even think of doing it that way."
Since resuming office in January, US President Donald Trump had demanded the US Fed cut interest rates and blamed the institution for holding back the economy.
The grand jury subpoenaes and Powell's statement mark a stark deterioration in the relationship between the US government and central bank.
Trump has even publically mused about firing Powell, despite legal protections covering the chairman of the reserve bank from being removed over policy disputes.
Powell's second four-year term as Chairman of the US Federal Reserve will end in May.
The US Fed chairman is nominated by the President from among the Board of Governors and confirmed by the Senate. Trump could nominate the next chairman as soon as next month.
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Curated by Shiv Shakti Mishra
