Federal prosecutors open criminal investigation into the Fed and Jerome Powell

Federal prosecutors have opened a criminal investigation of Federal Reserve Chair Jerome Powell over his June testimony before Congress about the central bank’s $2.5 billion renovation of its headquarters in Washington, DC.

The stunning action against the independent Federal Reserve was met with an equally extraordinary statement posted by Powell in a video Sunday night, in which he said the investigation was a direct result from his ongoing struggle with the administration over interest rates. Powell said it was a consequence of broader “threats and ongoing pressure” by the administration.

“The threat of criminal charges 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,” Powell said in a statement late Sunday.

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