President Donald Trump denied having any knowledge of the Justice Department's investigation into the Federal Reserve after the agency subpoenaed the central bank Friday.
“I don’t know anything about it, but he’s certainly not very good at the Fed, and he’s not very good at building buildings,” Trump said of Federal Reserve Chair Jerome Powell in a brief interview with NBC News Sunday night.
Powell said Sunday that the Justice Department was threatening the Federal Reserve with 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 chair of the Federal Reserve — is above the law,” Powell said. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
The move comes after a yearlong campaign by Trump to pressure Powell to lower interest rates, and Powell said Sunday he believed the latest move by the administration was part of that effort.
"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," Powell said.
Trump told NBC News on Sunday that the Justice Department subpoenas have nothing to do with interest rates.
“No. I wouldn’t even think of doing it that way. What should pressure him is the fact that rates are far too high. That’s the only pressure he’s got,” Trump said.
“He’s hurt a lot of people,” he added. “I think the public is pressuring him.”
On Dec. 29, in remarks at his Mar-a-Lago resort, Trump raised the possibility of legal action against Powell around the renovations.
"We're thinking about bringing a suit against Powell for incompetence. ... He said, $4 billion more, it's going to end up causing more than $4 billion, $4 billion. It’s the highest price of construction," Trump said, adding, "There is nothing you can do about he's just a very incompetent man, but we're going to probably bring a lawsuit against him."
The Justice Department's investigation met with swift backlash from Sen. Thom Tillis, R-N.C., a member of the Banking Committee, who said he will not vote to confirm any of Trump's nominees — including for the position of chair — for the Federal Reserve.
“I will oppose the confirmation of any nominee for the Fed—including the upcoming Fed Chair vacancy—until this legal matter is fully resolved,” he said in a statement.
“If there were any remaining doubt whether advisers within the Trump Administration are actively pushing to end the independence of the Federal Reserve, there should now be none,” he said.
Sen. Elizabeth Warren of the Massachusetts, the top Democrat on the Banking Committee, said in a statement that Trump is "abusing the authorities of the Department of Justice like a wannabe dictator so the Fed serves his interests, along with his billionaire friends."
"This Committee and the Senate should not move forward with any Trump nominee for the Fed, including Fed Chair,” she added.
Powell's term as chairman ends in May, but his position as a member of the Federal Reserve's Board of Governors doesn’t expire until 2028.
The White House declined to comment, referring all inquiries to the Justice Department. A spokesperson for that agency said they could not comment on any specific case.
“The attorney general has instructed her U.S. attorneys to prioritize investigating any abuse of taxpayer dollars,” the spokesperson said.
The Federal Reserve is not funded through taxpayer dollars. The central bank and its regional banks are funded by fees on services like check processing, as well loans it makes to corporate banks and the income it gets from its investment portfolio of U.S. government bonds, foreign currencies and other securities.
Timothy Lauer, a spokesperson for the office of the U.S. attorney for the District of Columbia — the office handling the case — said, “We do not comment on ongoing investigations.”
The Justice Department has previously opened investigations into current and former government officials following 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 battled publicly.
Lindsey Halligan, who was serving as U.S. attorney for the Eastern District of Virginia, indicted Comey and James. Those cases were thrown out after a federal judge found in November that Halligan had been appointed unlawfully.
