Powell Vows To Stand Firm Following DOJ Subpoenas

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00:00It is an extraordinary, unprecedented moment for the Fed.

00:04On Friday, the U.S. Attorney for the District of Columbia served a subpoena on Fed Chair Jay Powell,

00:10demanding notes and documents related to his congressional testimony in June

00:14on renovations to two of the Fed's buildings in Washington.

00:18The cost of the renovations has jumped to $2.5 billion from $1.9 billion,

00:24and the president has insinuated some sort of fraud on Powell's part.

00:28There is no indictment, at least not yet,

00:31but Powell is essentially arguing the administration is guilty of extortion.

00:37The threat of criminal charges is a consequence of the Federal Reserve setting interest rates

00:41based on our best assessment of what will serve the public,

00:45rather than following the preferences of the president.

00:48The president says he doesn't know anything about the investigation,

00:51and so far the administration's efforts to indict other officials have largely failed.

00:56What this does do is make it more difficult for any Trump choice to replace Powell as chair in June

01:02to get through the Senate confirmation process,

01:05and possibly increases the chances that Powell stays on as governor when his term as chair ends.