The Trump administration’s legal threat against Federal Reserve Board Chairman Jerome Powell is as unprecedented as it is ham-fisted. Powell revealed in a video statement Sunday that the Justice Department had opened a criminal investigation into him over the renovations of the Washington headquarters of the independent agency he runs. Although everyone can see through the stated reason for the lawsuit to the president’s obsession with interest rates — which Powell articulated sharply — it’s startling that the Justice Department is willing to risk colossal damage to the U.S. economy to further President Donald Trump’s agenda. Especially considering it still might not even accomplish the latter.
As a criminal matter, the investigation makes little sense. Federal prosecutors are examining whether Powell lied to Congress about the scope of the project or did not obtain the proper permits to undertake the $2.5 billion renovations, The Wall Street Journal reported. The project has run over budget, but the Fed has been transparent about where the additional costs have come from, and which features from an earlier proposal that drew criticism had been nixed. It’s hard to see how benefit Powell could have benefited from this situation.
The Justice Department’s involvement makes slightly more sense when the source of the probe is considered. The New York Times reported that the “inquiry, which includes an analysis of Mr. Powell’s public statements and an examination of spending records, was approved in November by Jeanine Pirro, a longtime ally of President Trump” who was appointed U.S. attorney for the District of Columbia last year.
But the timing of the investigation remains baffling.
This is a preview of Hayes Brown’s latest column. Read the full column here.
