Judge Blocks DOJ from Subpoenaing Fed Chair Jerome Powell
A federal judge has blocked the Justice Department from serving subpoenas to Federal Reserve chair Jerome Powell, who disclosed the surprise investigation as a threat to the Fed's independence.
In a move that underscores the ongoing tensions between the Trump administration and the Federal Reserve, a federal judge has blocked the Justice Department from serving subpoenas to Fed chair Jerome Powell. The DoJ's investigation was purportedly about the management of the central bank's renovation, but Powell has described the inquiry as a threat to the Fed's independence and part of the Trump administration's attempts to pressure the Fed to cut interest rates.
The surprise investigation was first disclosed by Powell on 11 January, in what was seen as an unusual step for a Fed chair. Powell expressed concern that the DoJ's actions could undermine the central bank's ability to make decisions free from political interference. The Fed's independence is considered crucial to its ability to effectively manage monetary policy and maintain the public's trust in the institution.
{{IMAGE_PLACEHOLDER}}Source: The Guardian
