[Reiwa]

Federal prosecutors open criminal investigation into the Fed and Jerome Powell

Federal prosecutors have opened a criminal investigation of Federal Reserve Chair Jerome Powell over his June testimony before Congress about the central bank’s $2.5 billion renovation of its headquarters in Washington, DC,

The stunning action against the independent Federal Reserve was met with an equally extraordinary statement posted by Powell in a video Sunday night, in which he said the investigation was a direct result from his ongoing struggle with the administration over interest rates. Powell said it was a consequence of broader “threats and ongoing pressure” by the administration.