By Emmanuel Bobby
President Donald Trump said Sunday that he has no knowledge of the Justice Department’s investigation into the Federal Reserve, following the agency’s decision to subpoena the central bank late last week.
“I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” Trump said of Federal Reserve Chair Jerome Powell during a brief interview Sunday night.
Powell said earlier Sunday that the Justice Department had threatened the Federal Reserve with a possible criminal indictment tied to his June testimony before the Senate concerning renovations to the central bank’s office buildings.
“No one — certainly not the chair of the Federal Reserve — is above the law,” Powell said. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
The development follows a yearlong campaign by Trump to push Powell to lower interest rates. Powell said he believes the Justice Department’s latest move is part of that broader effort.
“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.
Trump rejected the suggestion that the subpoenas were connected to interest rate policy, saying the investigation had nothing to do with monetary decisions.
“No. I wouldn’t even think of doing it that way,” Trump said. “What should pressure him is the fact that rates are far too high. That’s the only pressure he’s got.”
“He’s hurt a lot of people,” Trump added. “I think the public is pressuring him.”
The Justice Department’s actions drew immediate criticism from lawmakers on both sides of the aisle. Sen. Thom Tillis, R-N.C., a member of the Senate Banking Committee, said he would block confirmation of any Trump nominees to the Federal Reserve, including a future chair, until the matter is resolved.
“I will oppose the confirmation of any nominee for the Fed — including the upcoming Fed chair vacancy — until this legal matter is fully resolved,” Tillis said. “If there were any remaining doubt whether advisers within the Trump administration are actively pushing to end the independence of the Federal Reserve, there should now be none.”
Sen. Elizabeth Warren of Massachusetts, the top Democrat on the Banking Committee, also condemned the investigation, accusing Trump of politicizing the Justice Department.
“Trump is abusing the authorities of the Department of Justice like a wannabe dictator so the Fed serves his interests, along with his billionaire friends,” Warren said. She added that the Senate should not move forward with any Trump nominee for the Federal Reserve, including the chair.
Powell’s term as Fed chair expires in May, though his seat on the Federal Reserve’s Board of Governors runs through 2028.
The White House declined to comment on the investigation, directing questions to the Justice Department. A spokesperson for the department said it could not discuss any specific case but noted that the attorney general has instructed U.S. attorneys to prioritize investigations into potential abuse of taxpayer funds.
The Federal Reserve, however, does not rely on taxpayer funding. The central bank and its regional institutions are funded through service fees, interest on loans to banks, and income from its investment portfolio, which includes U.S. government bonds and other securities.
Timothy Lauer, a spokesperson for the U.S. attorney’s office for the District of Columbia, which is handling the matter, said the office does not comment on ongoing investigations.
The Justice Department has previously opened investigations into current and former officials following public pressure from Trump. In October, Trump publicly urged Attorney General Pam Bondi to pursue legal action against former FBI Director James Comey, Sen. Adam Schiff of California, and New York Attorney General Letitia James.
Lindsey Halligan, who was serving as U.S. attorney for the Eastern District of Virginia, later indicted Comey and James, but those cases were dismissed after a federal judge ruled in November that Halligan’s appointment had been unlawful.
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