US Justice Department's Probe into Fed Raises Questions About Independence of Central Bank
In a significant escalation of its extraordinary attack on the US central bank's independence, the justice department has served the Federal Reserve with grand jury subpoenas in connection with the multibillion-dollar renovations of its historic headquarters in Washington. The move comes amid allegations that the Trump administration is targeting Jerome Powell, the current Fed chair, for his repeated defiance of the president's demands for drastic interest rate cuts.
The justice department's investigation into the renovation project and potential wrongdoing by Powell has raised eyebrows among observers, who point out that the probe is unprecedented in its scope and nature. The move appears to be an attempt by the Trump administration to exert control over the Fed, which is a key institution in shaping monetary policy and influencing inflation.
In response to the investigation, Kevin Hassett, Donald Trump's top economic adviser, downplayed the significance of the case, stating that he expected there was "nothing to see here." However, his comments seemed somewhat insincere, given the gravity of the allegations against Powell. Hassett suggested that Powell had told the truth about the renovation project and hinted that he believed the cost overruns were related to issues such as asbestos.
The investigation has drawn criticism from all living former Fed chairs, who have warned that similar prosecutorial attacks on central banks in other countries have led to devastating consequences for the economy. Central banks around the world have also issued a rare joint statement offering their support and solidarity to Powell.
Despite the controversy surrounding the probe, Hassett expressed his commitment to transparency and independence if he were appointed as Fed chair. He said that he would take the job with a promise to uphold these values, which are essential for the functioning of the central bank.
The Trump administration's actions have sparked concerns about the erosion of the Fed's independence, which is crucial for maintaining monetary stability and preventing policy mistakes. As the investigation unfolds, it remains to be seen whether Powell will face charges related to his involvement in the renovation project or whether the justice department's probe will yield any significant findings.
For now, Hassett's comments have reinforced the perception that the Trump administration is using the justice department to exert pressure on the Fed and undermine its independence. The situation has sparked a heated debate about the limits of executive power and the importance of protecting central banks from politicization.
In a significant escalation of its extraordinary attack on the US central bank's independence, the justice department has served the Federal Reserve with grand jury subpoenas in connection with the multibillion-dollar renovations of its historic headquarters in Washington. The move comes amid allegations that the Trump administration is targeting Jerome Powell, the current Fed chair, for his repeated defiance of the president's demands for drastic interest rate cuts.
The justice department's investigation into the renovation project and potential wrongdoing by Powell has raised eyebrows among observers, who point out that the probe is unprecedented in its scope and nature. The move appears to be an attempt by the Trump administration to exert control over the Fed, which is a key institution in shaping monetary policy and influencing inflation.
In response to the investigation, Kevin Hassett, Donald Trump's top economic adviser, downplayed the significance of the case, stating that he expected there was "nothing to see here." However, his comments seemed somewhat insincere, given the gravity of the allegations against Powell. Hassett suggested that Powell had told the truth about the renovation project and hinted that he believed the cost overruns were related to issues such as asbestos.
The investigation has drawn criticism from all living former Fed chairs, who have warned that similar prosecutorial attacks on central banks in other countries have led to devastating consequences for the economy. Central banks around the world have also issued a rare joint statement offering their support and solidarity to Powell.
Despite the controversy surrounding the probe, Hassett expressed his commitment to transparency and independence if he were appointed as Fed chair. He said that he would take the job with a promise to uphold these values, which are essential for the functioning of the central bank.
The Trump administration's actions have sparked concerns about the erosion of the Fed's independence, which is crucial for maintaining monetary stability and preventing policy mistakes. As the investigation unfolds, it remains to be seen whether Powell will face charges related to his involvement in the renovation project or whether the justice department's probe will yield any significant findings.
For now, Hassett's comments have reinforced the perception that the Trump administration is using the justice department to exert pressure on the Fed and undermine its independence. The situation has sparked a heated debate about the limits of executive power and the importance of protecting central banks from politicization.
This is getting crazy... I mean, what's next? Are they gonna go after the astronauts on the moon too? 
Just kidding, sorta. But seriously, this whole thing with the Fed and Trump's admin is super shady. They're basically trying to use the justice department to strong-arm Powell into doing what they want, which is completely unacceptable. 
I mean, come on, if they've got evidence of wrongdoing, that's one thing, but accusing someone just because you don't like their stance on interest rates? That's not how it works. The Fed needs to stay independent and make decisions based on what's best for the economy, not some politician's ego trip. 
it's meant to be impartial, making decisions based on economic data not personal agendas. if trump's admin is trying to muscle in on that, it sets a bad precedent for future presidents. they're basically saying 'we can do whatever we want and you have to go along' 
the fact that kevin hassett downplayed the significance of the case kinda comes across as insincere 
imo, the fact that trump's ppl are using the justice department to go after powell over some renovation project is just weird. like, what's next? gonna start investigating what's in people's pantry? 
hassett downplaying it is lowkey sus too, seems like he's trying to hide something. and the joint statement from former fed chairs is pretty strong, gotta wonder if they've got proof of anything or are just covering their own bases. can we get some actual sources on this instead of just 'expert' opinions? 
that would be a disaster...
. It's not just about the Fed's independence; it's about the economy, inflation, and economic stability. If they're going after Powell for disagreeing with Trump, that's not how you run a country or a central bank 
.
... if he genuinely believes there's nothing to see here, why was he appointed in the first place? Did he get a sweet deal because of his connections with Trump?
. We need to protect our institutions and keep them independent 
... for the economy's sake!
, the fact that they're investigating the fed's renovation project and targeting powell for his defiance is super suspicious... it's like they're trying to exert control over the economy and manipulate interest rates for their own gain 
if kevin hassett is insincere about his claims then maybe he should step down and let a real economist do their job 
. I mean, come on, who needs a grand jury subpoena for a renovation project? Sounds like they're trying to pin something on Powell and make him an scapegoat. And Hassett's response is just cringeworthy... "nothing to see here" yeah sure, buddy 
they're investigatin Jerome Powell like he did somethin wrong?? I got a cousin who works at the Fed and she said it's super tense there rn... everyone's worried about their jobs & stuff. The gov's gettin way too handsy w/ the economy, imo 
. and hassett's comment about nothing to see here? please, we all know how that's going to play out.
. the fed has got this! 
. It's like they're talking about some sort of historical cautionary tale, where if you don't keep the Fed independent, the whole economic ship goes down 
.
. It's like they're trying to get a wedge in there and turn Powell into some sort of scapegoat 
. But at the same time? I'm not convinced that Hassett really believes what he's saying 
. it's getting ridiculous how they're trying to dictate interest rates and control inflation 
. we need a strong, independent fed to keep our economy stable, not some pawn playing with the president's agenda 
It's like they're trying to say "Hey, we know what's best for the economy" without actually having to do any real research or planning 
.
. I mean, who is Kevin Hassett to be playing it cool when there are allegations flying around like crazy? 
Not to mention the fact that all these former Fed chairs are speaking out against this whole thing, saying it's going to hurt the economy big time 
. And Hassett's comments just made me wonder if he's more interested in saving his own skin than being honest 
. This whole thing is making me super anxious about the future of monetary policy