Powell characterized the investigation as "unprecedented" and expressed the opinion that it arose in response to his unwillingness to meet Trump's demands for a rate cut.
He emphasized: "The question is whether the Federal Reserve can continue to set interest rates based on economic data, or if it will be subject to political pressure."
Additionally, he noted: "I value the rule of law and accountability within our democracy. No one, including the Chair of the Fed, is above the law, but this action should be viewed in the context of pressure from the administration."
In response to questions, Trump stated in an interview with NBC News that he was unaware of the investigation against Powell.
"I'm not aware of it, but certainly, he's not doing very well in his duties at the Fed and doesn't know how to build buildings," the president noted.
Reasons for Trump's Discontent
The investigation, which has not yet received official confirmation from prosecutors, adds a new element to the ongoing conflict between Trump and Powell, who was appointed as head of the Fed in 2017.Trump, promising voters a rate cut during his campaign, has repeatedly criticized Powell for his refusal to significantly lower the key rate, calling him a "total loser" and "Mr. Too Late" in his posts.
It is important to note that the Fed's decisions are made independently of the president and the executive branch, which is a fundamental principle of the central bank's operation.
Moreover, Trump has also opposed the renovation of the Fed's headquarters, which costs $2.5 billion. Last week, he stated in an interview with the New York Times that he had already decided on a candidate for the new head of the Fed, and one of the most likely contenders is Trump's advisor Kevin Hassett.
Renovation work on the Fed buildings began in 2022 and is expected to be completed by 2027. According to the NYT, costs are expected to exceed the initial budget by $700 million.
The Fed explains that the capital renovation of the headquarters has not been carried out since its construction in the 1930s. In particular, it is necessary to remove asbestos and lead contamination, as well as ensure access for people with disabilities.
However, the NYT reports that the renovation project includes private elevators and dining rooms for high-ranking employees, fountains, and new marble elements, as well as a rooftop terrace.
During congressional hearings in June, Powell stated that many of these elements were not included in the final project: "There is no VIP dining room, no new marble," he explained. "We are dismantling the old marble, but reinstalling it."
