President Donald Trump denied that he had any knowledge of the Justice Department’s investigation into the Federal Reserve after the agency subpoenaed the central bank on Friday.
“I don’t know about that, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” Trump said of Federal Reserve Chairman Jerome Powell in a brief interview with NBC News Sunday night.
Powell said Sunday That the Justice Department was threatening the Fed with a possible criminal indictment related to his testimony before the Senate in June about the renovation of the agency’s office buildings.
“No one — certainly not the Fed chairman — is above the law,” Powell said. “But this unprecedented action must be viewed in the broader context of the administration’s threats and ongoing pressures.”
The move comes after a year-long campaign by Trump to pressure Powell to lower interest rates, and Powell said Sunday that he believed the administration’s latest move was part of that effort.
“The threat of criminal charges is the result of the Fed setting interest rates based on our best assessment of what will serve the public, rather than following the president’s preferences,” Powell said.
Trump told NBC News on Sunday that the Justice Department subpoenas had nothing to do with interest rates.
“No. I wouldn’t even think about doing it that way,” Trump said. “What he has to put pressure on is the fact that interest rates are so high. That’s the only pressure he has.”
“He hurt a lot of people,” he added. “I think the public is putting pressure on him.”
The Justice Department’s investigation was met with swift backlash from Sen. Thom Tillis, a member of the Banking Committee, who said he would not vote to confirm any of Trump’s nominees — including for chairman — to the Fed.
“I will oppose the confirmation of any Fed nominee — including the upcoming vacancy for Fed Chair — until this legal matter is fully resolved,” he said in a statement.
“If there was any remaining doubt as to whether advisers within the Trump administration were actively pushing to end the Fed’s independence, there should be none now,” he said.
Senator Elizabeth Warren of Massachusetts, the top Democrat on the Banking Committee, said in a statement that Trump “is abusing the powers of the Department of Justice like an aspiring dictator so that the Fed serves his interests, along with his billionaire friends.”
“This committee and the Senate should not move forward with any Trump Fed nominee, including Fed chair,” she added.
Powell’s term as chairman ends in May, but his position as a member of the Fed’s Board of Governors does not end until 2028.
The White House declined to comment, referring all inquiries to the Justice Department. A spokesman for that agency said they could not comment on any specific case.
“The Attorney General has instructed her US attorneys to prioritize investigating any misuse of taxpayer funds,” the spokesperson said.
The Federal Reserve is not funded by taxpayer money. The central bank and its regional banks are funded by fees on services such as check processing, as well as loans it makes to corporate banks and income it receives from its investment portfolio made up of US government bonds, foreign currencies and other securities.
“We do not comment on ongoing investigations,” said Timothy Lauer, a spokesman for the U.S. Attorney’s Office for the District of Columbia — the office prosecuting the case.
The Justice Department previously opened investigations into current and former government officials after public pressure from Trump.
In October, Trump posted a message on Truth Social telling Attorney General Pam Bondi that it was time for the Justice Department to take legal action against former FBI Director James Comey, Sen. Adam Schiff, D-Calif., and New York Attorney General Letitia James — all of whom he has publicly battled.
Lindsey Halligan, who was serving as US Attorney for the Eastern District of Virginia, charged Comey and James. Those cases were overturned after a federal judge in November found that Halligan’s appointment was illegal.