Fed Chair Jerome Powell Widely Praised for Pushing Back on Trump’s DOJ: ‘Quiet Dignity and Real Courage’

Federal Reserve Chairman Jerome Powell received a cascade of praise after he responded publicly to the Trump Justice Department’s opening of a criminal investigation into the Fed’s years-long renovation and allegations that he lied to Congress.

The investigation, opened by former Fox News host-turned-U.S. Attorney for Washington, D.C. Jeanine Pirro, comes amid President Donald Trump’s months and months of attacks against Powell for not lowering interest rates at his request.

Financial observers and former Fed officials immediately cried foul and warned that Trump’s move is further proof he’s trying to end the Fed’s independence, which underpins investor confidence in the economy. Former Federal Reserve Chair Janet Yellen on Monday called the DOJ probe “extremely chilling” and warned the “market should be concerned.”

Powell released a video clip on Sunday night and addressed the investigation. “On Friday, the Department of Justice served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to my testimony before the Senate Banking Committee last June. That testimony concerned in part a multi-year project to renovate historic Federal Reserve office buildings,” Powell said in the statement, adding:

I have deep respect for the rule of law and for accountability in our democracy. No one—certainly not the chair of the Federal Reserve—is above the law. But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.

This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress’s oversight role; the Fed through testimony and other public disclosures made every effort to keep Congress informed about the renovation project. Those are pretexts. 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.

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.

I have served at the Federal Reserve under four administrations, Republicans and Democrats alike. In every case, I have carried out my duties without political fear or favor, focused solely on our mandate of price stability and maximum employment. Public service sometimes requires standing firm in the face of threats. I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people.

Powell’s defiant message and straightforward assessment of the facts quickly received praise from across the political spectrum.

Conservative columnist David French shared the clip and wrote, “We’ve become so accustomed to cowardice and capitulation that quiet dignity and real courage shine all the brighter.”

Punchbowl’s John Bresnahan commented, “Just an extraordinary statement from Powell. He accuses the Trump administration- without mentioning names – of ginning up a criminal probe of the Fed in a battle over interest rates.”

Below are some additional comments:

__

New: The Mediaite One-Sheet "Newsletter of Newsletters"
Your daily summary and analysis of what the many, many media newsletters are saying and reporting. Subscribe now!