He described what is happening as "unprecedented" and expressed the opinion that the reason is Trump's dissatisfaction with his refusal to lower the rate.
Powell added: "The question is whether the Fed can continue to set interest rates based on economic data, or under pressure from politicians."
Referring to his principles, he emphasized the importance of the rule of law in democracy: "No one, including me, is above the law; however, this investigation should be viewed in the context of pressure from the administration."
In an interview with NBC News, Trump stated that he is not aware of the investigation into Powell.
"I'm not aware of it, but he's clearly not doing a good job at the Fed and can't build buildings," the president said about the head of the Fed.
Trump's Discontent
The investigation, which has not yet been announced by prosecutors, could mark a new phase in the conflict between Trump and Powell, whom the president appointed as head of the Fed in 2017.Trump, promising voters lower interest rates during his campaign, has criticized Powell for his unwillingness to significantly lower the key rate, calling him a "total loser" and "Mr. Too Late."
It is important to note that the Fed makes decisions completely independently of the president, which is a fundamental principle of the central bank's operation.
Trump has also expressed dissatisfaction with the renovation of the Fed's headquarters, which costs $2.5 billion. Last week, he told the New York Times in an interview that he has already chosen a new candidate for the head of the Fed, among whom Trump advisor Kevin Hassett stands out.
The renovation of the Fed buildings began in 2022 and is scheduled to be completed in 2027. According to the NYT, the cost of the work may exceed the budget by $700 million.
The Fed noted that the major renovation of the headquarters has not been carried out since it was built in the 1930s. In particular, asbestos and lead contamination need to be removed, and accessibility for people with disabilities needs to be improved.
Nevertheless, the renovation project includes separate elevators and cafeterias for high-ranking officials, fountains, and a rooftop terrace for employees.
At congressional hearings in June, Powell stated that many of these elements are not included in the final project. "There is no VIP cafeteria, no new marble," he clarified. "We took down the old marble, but we are reinstalling it."
