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.
