House Speaker Mike Johnson said he will withhold judgment on the Justice Department’s alleged criminal charges against Federal Reserve Chairman Jerome Powell.
Johnson answered from independent Whether markets can trust the Fed’s independence in light of the alleged criminal investigation into Powell.
“Chairman Powell is a human being, he is not the Fed,” he said at his weekly news conference. “He’s the chairman of the Federal Reserve.”
WASHINGTON, D.C. – January 7: House Speaker Mike Johnson (R-LA) said he will reserve judgment on the alleged criminal investigation of Federal Reserve Chairman Jerome Powell. (Getty Images)
Powell announced in a video message Sunday night that the Trump administration’s Justice Department was threatening criminal charges against him.
“If there are credible allegations or concerns that someone lied to Congress, then the Department of Justice should investigate,” Johnson said. “I mean, in the grand scheme of things, no matter who it is, no one is immune. If he’s innocent, as he says, then the investigation will unfold and we all need to reserve judgment and wait for that to happen.”
The charges are said to be related to testimony Powell gave to Congress last year about renovations to the Fed’s offices. Trump and Republicans have criticized the project for going over budget and the equipment is said to be elaborate.
President Donald Trump and Republicans have criticized Federal Reserve Chairman Jerome Powell for allegedly going over budget. (Getty)
But Powell said in a video Sunday night that the accusations stemmed from his unwillingness to give in to Trump’s desire to lower interest rates. Historically, central banks have tried to remain independent and apolitical.
Johnson said he would not comment at this time.
“There’s going to be a new president in May and, you know, we’ll move forward, but I’m going to reserve judgment on that because I suspect all of you should be doing the same,” he said. “I suggest you do the same. Let’s see what happens.”
Trump has repeatedly criticized Powell for being slow to cut interest rates. He nominated Powell as Fed chairman in 2017, and Joe Biden re-nominated Powell as Fed chairman.
Powell has cut interest rates three times, but only after initially expressing caution about Trump’s “Liberation Day” tariffs.
On Tuesday, the U.S. Bureau of Labor Statistics released its monthly consumer price index report, which showed inflation close to expectations. Inflation increased by 0.3% in December and by 2.7% over the past 12 months. Core CPI, which includes all products excluding food and energy, rose 2.6%.
That prompted Trump to criticize Powell again, calling him “too late” and “a stupid person.”
“Inflation data in the U.S.,” he said. “That means Jerome ‘Too Late’ Powell should meaningfully cut rates!!! If he doesn’t, he’ll continue ‘Too Late!’ with huge growth numbers. Thank you Mr. Tarif!”
But the alleged targeting of Powell drew sharp criticism from Republican senators. Retiring North Carolina Sen. Thom Tillis announced that he will retain Trump’s nominees on the Senate Banking Committee across the board.
Maine Sen. Susan Collins said she shared concerns.
“This may be about the independence of the Fed,” she told independent on Monday.
Massachusetts Sen. Elizabeth Warren, the top Democrat on the Senate Banking Committee, said independent She lambasted the move even though Trump called her on Monday to talk about costs and affordability.
“Trump is doing liberal texts to try to seize control,” she said.
