Fed Chair Powell Strongly Protests U.S. Prosecutors’ Subpoena

Financial News – Fed Chair Jerome Hayden Powell is strongly protesting after receiving a subpoena from federal prosecutors in connection with a criminal case.
On the 11th (local time), The New York Times (NYT), citing sources, reported that "Powell received a subpoena from prosecutors on the 9th in connection with the expansion of the Fed’s headquarters building." Federal prosecutors are said to be widening their investigation on suspicion that Powell lied in his testimony before Congress regarding the expansion of the Fed’s main building.
In response, Powell wrote on social media, "I have a deep respect for the rule of law. Nor is the Fed chair above the law. However, this unprecedented action must be viewed in the broader context of ‘threats and pressure by the administration on the Fed,’" directly criticizing the prosecutors’ decision to issue the subpoena.
Previously, U.S. President Donald Trump had repeatedly attacked Powell, accusing him of not cutting interest rates quickly enough.
The Fed is currently spending about 2.5 billion dollars (roughly 3.66 trillion won) to expand its headquarters building, and President Trump has also denounced this as wasteful. Since Trump himself poured substantial funds into enlarging a banquet hall at The White House, some at the time criticized him for hypocrisy.
This case is expected to further heighten tensions between President Trump and Fed Chair Powell. The investigation is being led by the Office of the Attorney General for the District of Columbia and is reportedly headed by former New York state prosecutor and conservative Fox News host Jeanine Pirro.
whywani@fnnews.com Hong Chae-wan Reporter