Statement by Federal Reserve Chairman Jerome H. Powell

Good evening.

On Friday, the Justice Department sent a grand jury subpoena to the Federal Reserve, threatening criminal indictments related to my testimony before the Senate Banking Committee last June. This testimony relates to a multi-year project to renovate historic Federal Reserve office buildings.

I have a deep respect for the rule of law and accountability in our democracy. No one—certainly not the Chairman of the Federal Reserve—is above the law. But this unprecedented action must be seen in the broader context of the administration’s threats and ongoing pressure.

This new threat is not about my testimony last June or the renovation of the Federal Reserve buildings. This is not about Congress’s oversight role; The Fed made every effort to keep Congress informed about the renewal project through testimony and other public disclosures. Those are excuses. The threat of criminal charges is the result of the Federal Reserve setting interest rates based on our best assessment of serving the public rather than following the President’s preferences.

It is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions – or whether monetary policy will instead be guided by political pressure or intimidation.

I have worked at the Federal Reserve under four administrations, Republican and Democrat. In every case, I have performed my duties without political fear or favoritism, focused solely on our mandate of price stability and maximum employment. Public service sometimes requires standing firm in the face of dangers. I will continue to do the job to which the Senate appointed me with integrity and commitment to serving the American people.

Thank you.