On Sunday night, a shocking report published by The New York Times disclosed that the Federal Reserve was in the sights of federal prosecutors.

The report revealed that prosecutors from the District of Columbia opened an investigation into a testimony Federal Reserve Chair Jerome Powell offered before the Senate Banking Committee in June regarding a project to renovate historic institution buildings.

The probe was approved by Attorney Jeanine Pirro in November, raising concerns about the scope of the renovation project through an examination of the spending records.

Powell acknowledged that the Fed had been served with subpoenas and threatened with criminal charges in a statement shared minutes after the report was published. While he ensured that no one, not even the Chair of the Federal Reserve, was above the law, he stressed that this action “should be seen in the broader context of the administration’s threats and ongoing pressure.”

Powell assessed that this threat of criminal charges was related to his clash with the Trump Administration on monetary policy changes. He declared:

The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.

Powell also said that the independence of the Federal Reserve was at stake. “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation,” he concluded.

Republican Senator Thom Tillis, a member of the Senate Banking Committee, backed Powell’s statements on Trump’s advisors’ involvement in this move to end Federal Reserve independence. Tillis noted that he would oppose the confirmation of any nominee for the Fed, including an upcoming chair vacancy, until this matter was fully resolved.

Read more: Federal Reserve Pulls the Trigger on a Quarter-Point Cut

• What investigation was recently reported regarding the Federal Reserve?
  U.S. prosecutors are investigating Federal Reserve Chair Jerome Powell’s testimony to the Senate Banking Committee concerning a renovation project.
• Who approved the investigation and when?
  The probe was approved by Attorney Jeanine Pirro in November, focusing on the spending records related to the renovation project.
• How did Jerome Powell respond to the allegations?
  Powell acknowledged that the Fed has received subpoenas and mentioned the threat of criminal charges, emphasizing that no one is above the law.
• What implications does Powell see for the independence of the Federal Reserve?
  Powell warned that the investigation could undermine the independence of the Fed, stressing that policy should be guided by economic conditions rather than political pressure.

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