Republican senators condemn investigation into Powell. “A politically motivated attack on the bank's independence”

On Monday, some Republican senators criticized the US federal prosecutor's investigation into Fed Chairman Jerome Powell, considering it a politically motivated attack on the independence of the central bank. Senator Thom Tillis announced his opposition to Trump's nominees to the Fed board.

So far, the threat of criminal charges against Powell has been criticized by at least three ruling party senators, including banking committee chairman Kevin Cramer.

“Jerome Powell is a lousy Federal Reserve chairman who has avoided clear answers to Congress, especially regarding budget overruns for an expensive building renovation… But I do not believe he is a criminal. I hope this criminal investigation will be concluded quickly at the end of Jerome Powell's term. We must rebuild trust in the Federal Reserve,” Cramer said.

According to Powell's statement, federal prosecutors are investigating him criminally for allegedly false testimony to a commission led by Cramer about the costly renovation of the Federal Reserve buildings. However, Powell accused the Trump administration that the investigation is just an excuse for the White House to target him over the Fed's decisions on interest rates.

“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 in a statement on Sunday. “The issue is whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether monetary policy will be guided by political pressure and intimidation,” he added.

Senators Lisa Murkowski and Thom Tillis also agreed with Powell on Monday. The latter announced on Sunday that he would vote against any of Trump's nominees to the Federal Reserve Board. Murkowski announced she would do the same.

“If there was any doubt that Trump administration advisers are actively seeking to end the independence of the Federal Reserve, there should be no doubt now. The independence and credibility of the Department of Justice are now in question,” Tillis said.

The case of potential charges against Powell – who has been the object of criticism and insults from the president for many months – has caused a political storm in Washington. The move was also condemned in a letter by three former Fed governors: Alan Greenspan, Ben Bernanke and Janet Yellen, who called it an “unprecedented” attack on the independence of the central bank.

Trump himself claimed on Sunday that he knew nothing about the investigation. Nevertheless, at the end of December he announced that he might seek to remove Powell from his role, although he admitted that his advisers had warned him against such a move. Trump also announced he would file a lawsuit against Powell “for incompetence” regarding the costs of renovating the Reserve buildings.

Kevin Hassett, director of the National Economic Council in the White House and a leading candidate to succeed Powell, also assured journalists on Monday that he had no knowledge of the investigation. Although he has repeatedly defended the idea of ​​​​the independence of the central bank, Hassett suggested that an investigation of the current president is justified.

– I think the question is: if you think the building cost $20 billion or $10 billion (it actually cost $2.5 billion – PAP), do you think it would be appropriate at some point for the federal government to conduct an investigation? It appears that the Department of Justice has decided to investigate what is going on there, with this building, which is much more expensive than any other building in the history of Washington, said a Trump adviser. – And if I were the head of the Fed, I would want them to do that. “I think it's very important to understand where taxpayers' money goes and why it goes this way or that,” he added.

From Washington Oskar Górzyński (PAP)

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