“That testimony concerned in part a multi-year project to renovate historic Federal Reserve office buildings,” Powell said in a statement.
The subpoenas were served on Friday.
“I have deep respect for the rule of law and for accountability in our democracy. No one—certainly not the chair of the Federal Reserve—is above the law. But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” Powell said.
“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,” he said.
“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,” Powell said.
Read the full text of Powell’s statement: https://www.federalreserve.gov/newsevents/speech/powell20260111a.htm
International central bankers back Powell
International central bankers said they stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell.
The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve, a statement posted by The European Central Bank said.
“It is therefore critical to preserve that independence, with full respect for the rule of law and democratic accountability,” it said.
Chair Powell has served with integrity, judgement and an unwavering commitment to the public interest. To us, he is a respected colleague who is held in the highest regard by all who have worked with him, the statement added.
