Jerome Powell presented a statement regarding the announced indictment and the summons to testify. He accused the Trump administration of attacking the bank's independence, saying the investigation was just a pretext. Here is its full content.
“On Friday, the Department of Justice served the Federal Reserve with a threatening grand jury subpoena in connection with my testimony before the Senate Banking Committee last June. That testimony included a multi-year project to renovate the Federal Reserve's historic office buildings,” Powell said.
He added that he has deep respect for the rule of law and accountability in American democracy. “No one — least of all the chairman of the Federal Reserve — is above the law. But this unprecedented action must be seen in the broader context of the administration's threats and continued pressure,” Jerome “Jay” Powell said.
“This new threat does not apply to my testimony in June or to the renovation of the Federal Reserve buildings. It does not address congressional oversight; The Fed has made every effort to keep Congress informed about the renovation project through testimony and other public disclosures. These are just excuses. “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best judgment of what will serve society, rather than in accordance with the president's preferences,” Powell said.
He added that this whole thing is ultimately about whether the Fed will be able to continue to set interest rates based on evidence and economic conditionsor whether monetary policy will be driven by political pressure or intimidation.
“I have served at the Federal Reserve through four administrations, both Republican and Democratic. In each case, I have performed my duties without fear or favor of politics, focusing solely on our goals of price stability and maximizing employment. Public service sometimes requires decisiveness in the face of threats. I will continue to perform the job for which the Senate has confirmed me with integrity and commitment to serving the American people,” Jerome Powell said.
His five-year (second) term as head of the Federal Reserve ends in May this year. It is worth recalling that he was appointed to this position by Donald Trump in November 2017. He was later re-elected by Joe Biden. In 2025, after assuming the presidency in his second term, Trump attacked Powell and threatened to dismiss him, which was criticized due to concerns about the violation of the central bank's independence. However, in December, Trump said that although it made no sense to remove Powell with less than six months before the end of his term, he could do it anyway.
The Fed has resumed interest rate cuts
On Sunday, Powell said the Federal Reserve received subpoenas to appear before a grand jury and indications of possible criminal charges from the Justice Department on Friday.
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Although President Donald Trump denied knowledge of the investigation in an interview with NBC, many observers see the move as an escalation of his long-standing public criticism of the Fed and Powell for not cutting interest rates more aggressively to stimulate the economy. “I don't know anything about it, but he's certainly not very good at running the Fed and he's not very good at building buildings,” the president said.
Donald Trump has repeatedly and publicly attacked Powell for refusing to lower interest rates, calling him, among other things, “stubborn donkey” or “moron”. He repeatedly pressed him for a cut in interest rates to stimulate the economy.
At its mid-December meeting, the Federal Reserve decided to reduce interest rates by 0.25 percentage points. to the range of 3.5-3.75 percent (as expected). Also in September and October the cost of money was reduced by a quarter of a percentage point. The September meeting was very important because the Fed returned to easing its monetary policy after almost a year of pause.
The next meeting is scheduled for January 28 and the market is convinced that the cost of money in the world's largest economy will not change then. Investors also think similarly in the context of the meetings in March and April. A cut of 0.25 percentage points. may take place only at the meeting on June 17 (up to 3.25-3.50 percent) – according to CME FedWatch Tool. Another cut is priced in by the market in the fall, as a result of which the rate would drop to the range of 3.00-3.25%.
