US Fed Chair Jerome Powell under criminal investigation

Jerome Powell is reported to be under criminal investigation, with the probe overseen by the U.S. Attorney's Office for the District of Columbia, and some senators have raised concerns about the implications for the Federal Reserve and the Justice Department.

Federal Reserve Chair Jerome Powell is reported to be under criminal investigation by the U.S. Department of Justice. The New York Times reported the probe and said it will be overseen by the U.S. Attorney's Office for the District of Columbia. Powell has publicly framed the matter as linked to pressure on the Fed and has said it raises questions about whether the central bank can set rates based on evidence and economic conditions. He also reiterated respect for the rule of law. Reported details: - The New York Times first reported that the Department of Justice is investigating Jerome Powell and that the U.S. Attorney's Office for the District of Columbia will oversee the probe. - Powell said the action should be seen in the broader context of administration threats and pressure, and he emphasized the Fed's role in setting interest rates based on evidence and economic conditions. - Senator Thom Tillis said he would oppose nominations to the Federal Reserve Board until the legal matter is resolved and said the independence of the Fed and the credibility of the Department of Justice were in question. Summary: The reported investigation has led to public statements from Powell and from at least one senator expressing concern about institutional independence and the credibility of oversight. Undetermined at this time.