The Fed Under Scrutiny: Justice Department Questions Building Project
WASHINGTON – Federal Reserve Chairman Jerome Powell revealed Sunday that the Justice Department has issued subpoenas and raised the possibility of a criminal indictment related to his testimony regarding the Fed’s building renovations.
The Justice Department is looking into how the Federal Reserve managed a $2.5 billion renovation of office buildings, a project that has drawn criticism.
Powell defended the Fed’s independence, stating the inquiry could undermine the Fed’s ability to set interest rates based on economic data, free from political influence. The Fed has sometimes tried to work with the administration, such as when it pulled back on climate change considerations, an issue the administration opposed.
The Justice Department stated that it could not comment on specific cases, but noted its commitment to investigating the misuse of taxpayer money.
Senator Thom Tillis expressed concern, pledging to oppose future Fed nominees until the matter is resolved, stating that the Justice Department’s credibility is now in question.
