House Speaker Mike Johnson said he would reserve judgment about the Department of Justice allegedly targeting Federal Reserve Chairman Jerome Powell for criminal charges.
Johnson responded to a question from The Independent about whether markets could trust the Federal Reserve’s independence given the supposed criminal investigation into Powell.
“Chairman Powell is an individual, he is not the Fed,” he said during his weekly press conference. “He’s the chair of the Fed.”
Powell announced on video Sunday evening that he was being threatened with criminal charges by the Trump administration’s Department of Justice. The administration has long blasted him for alleged cost overruns at their Washington, D.C., buildings – where the price tag now sits at $2.5 billion.
“If there’s a credible allegation or concern someone’s lied to Congress, then the DOJ should investigate,” Johnson said. “I mean, across the board, no matter who it is, no one is immune from that. If he’s innocent, as he says, then that will come out in the investigation, and all of us need to reserve judgment and wait for that to happen.”
The charges are supposedly related to testimony that Powell gave to Congress last year about renovations to the Federal Reserve’s offices. Trump and Republicans have consistently criticized the project for running over budget and for supposedly elaborate accoutrements.
But Powell said in his Sunday evening video that the charges stem from his unwillingness to bend to Trump’s desire to reduce interest rates. Historically, the central bank has attempted to remain independent and apolitical.
Johnson said that he would not comment for the time being.
“There will be a new chairman come May, and you know, we’ll go forward, but I’m going to reserve judgment on it, as I suspect all of you should do as well,” he said. “I recommend you do as well. Let’s see what happens.”
Trump has repeatedly criticized Powell, whom he nominated to be chairman of the Federal Reserve in 2017 and whom Joe Biden renominated, for being slow to cut interest rates.
Powell slashed interest rates three times, but only did so after he initially expressed caution given Trump’s “Liberation Day” tariffs.
On Tuesday, when the Bureau of Labor Statistics released its monthly Consumer Price Index report, showing inflation coming in about around expectations. Inflation rose 0.3 percent in the month of December and 2.7 percent in the past 12 months. Core CPI, which includes all products minus food and energy, rose by 2.6 percent.
That prompted Trump to once again criticize Powell, whom he has called “too late” and “a stupid person.”
“Inflation numbers for the USA,” he said. “That means that Jerome ‘Too Late’ Powell should cut interest rates, MEANINGFULLY!!! If he doesn’t he will just continue to be, ‘TOO LATE!’ ALSO OUT, GREAT GROWTH NUMBERS. Thank you MISTER TARIFF!”
But the supposed targeting of Powell earned sharp criticism from Republican senators. Retiring Sen. Thom Tillis of North Carolina announced he would put a blanket hold on Trump’s nominees in the Senate Banking Committee.
Sen. Susan Collins of Maine said she had concerns as well.
“This may be about the independence of the Fed,” she told The Independent on Monday.
Sen. Elizabeth Warren of Massachusetts, the top Democrat on the Senate Banking Committee, told The Independent lambasted the move despite the fact Trump called her on the phone on Monday to talk about cost and affordability.
“Trump is engaging in a free text in order to try to seize control,” she said.
