President Donald Trump on Thursday signaled his continued support for a Department of Justice investigation into Federal Reserve Chairman Jerome Powell — a stance that could further delay the confirmation of his would-be successor, Kevin Warsh.
“He’s under investigation because he’s building a building for hundreds of billions of dollars more than it’s supposed to cost,” Trump said of Powell in the Oval Office.
He was referring to ongoing renovations of the Fed’s headquarters in Washington, the purported focus of the federal criminal probe of the central bank chairman led by U.S. Attorney Jeanine Pirro.
Powell has accused the government of launching the investigation in retaliation for his refusal to lower interest rates as much or as quickly as Trump has demanded.
U.S. District Judge James Boasberg, in a scathing ruling last week, blocked subpoenas issued by a Washington grand jury as part of the probe.
“A mountain of evidence suggests that the Government served these subpoenas on the [Fed’s] Board to pressure its Chair into voting for lower interest rates or resigning,” the judge wrote.
Pirro vowed to appeal the ruling, which she called “outrageous.”
Powell said Wednesday that he would not leave the Fed’s board of governors until the probe was “well and truly over” with “transparency and finality.”
He also said he has not decided whether to depart before his term as governor ends, even if the investigation is resolved.
“I have not made that decision yet,” Powell said. “I will make that decision based on what I think is best for the institution and for the people we serve.”
Powell’s term as Fed chair ends in May, while his term as governor lasts until 2028.
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