🔴 What happened?
The U.S. Department of Justice has sent subpoenas to the federal government.
These memos include a threat to bring criminal charges against Powell.
The stated reason: his testimony before the Senate last June, in which he discussed a project to restore historic buildings belonging to the Federal.
⚖️ Powell's stance on the matter
Powell stressed that he respects the law, and that no one is above the law, including the Federal Reserve chairman.
But he made it clear that this measure was unprecedented and should be viewed in the context of ongoing political pressure.
❗ The most important point (the heart of the matter)
Powell said that:
This threat is not because of his testimony.
And not because of the building project.
Not because of congressional oversight (because the Federal Reserve was transparent and informed them of everything).
🔴 The truth from his point of view:
The threat arose because the Federal Reserve sets interest rates based on the best interests of the economy.
Not based on the wishes of the president or the political administration.
🏦 Why is this statement dangerous?
Powell poses an important question:
Will the Federal Reserve remain independent and decide interest rates based on economic data?
Or will monetary policy become subject to political pressure and threats?
This is very dangerous for the economy.
🧾 His self-defense
Powell said he served under four different administrations (Republican and Democratic).
And every time he worked without political bias.
His focus was always on:
Price stability (combating inflation)
Maximize employment as much as possible
💬 Summary
Powell sends a clear message:
The federal government must remain independent of politics.
Interest rate decisions should be based on numbers and the economy, not on pressure and threats.
He affirms that he will continue to perform his duties with integrity and in service to the American people, regardless of the pressure.