‘Incompetent or crooked’: Trump slams Powell over budget overrun amid Fed probe — watch video | Today News

President Donald Trump accused Federal Reserve Chair Jerome Powell of being either “incompetent” or “crooked” following controversy in Washington over a Justice Department investigation into the renovation of the central bank’s headquarters.

According to a report by Bloomberg, speaking to reporters on Tuesday as he left the White House for an economic address in Detroit, Trump stated, “He’s billions of dollars over budget, so, either he’s incompetent or he’s crooked. I don’t know what he is, but he certainly doesn’t do a very good job.”

The investigation represents a sharp intensification of the Trump administration’s campaign against the Federal Reserve and has reignited concerns about the central bank’s independence. Trump has repeatedly floated the idea of dismissing Powell before his term as chair expires in May and is now considering potential candidates to succeed him.

However, the decision to launch a criminal probe, revealed over the weekend, triggered backlash from Republican senators. The fallout could complicate confirmation of any future nominee for Fed chair and undermine the president’s push to gain greater influence over the central bank.

Powell said on Sunday that the Justice Department had issued grand jury subpoenas to the Fed in connection with an investigation into a headquarters renovation project and his related testimony before Congress.

Senator Thom Tillis, a retiring Republican from North Carolina and a member of the Senate Banking Committee, said he would block all Federal Reserve nominations until the issue is settled. Republican Senators Lisa Murkowski and Kevin Cramer have also voiced criticism of the move.

Three former Federal Reserve chairs and four former Treasury secretaries from both Republican and Democratic administrations condemned the investigation in a joint statement, stating “it has no place in the United States whose greatest strength is the rule of law, which is at the foundation of our economic success".

Trump had earlier appeared to play down his involvement, telling NBC News that he was unaware of the subpoenas. A longtime critic of Powell, Trump has repeatedly pressed the Fed to cut interest rates and has said he would only appoint a new chair who agrees to lower rates, a requirement that further undermines the central bank’s independence.

In a statement on Sunday, Powell described the renovation-related investigation as “pretexts” for a wider campaign aimed at pressuring the Fed over interest rate policy.

“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 mentioned.