MNI BRIEF: Powell Says Fed Received Justice Dept. Subpoenas

Federal Reserve Chair Jerome Powell said Sunday the central bank has received grand jury subpoenas from the U.S. Justice Department that threatened a criminal indictment, but argued the move is a pretext aimed at clipping the institution's independence. 

"I have deep respect for the rule of law and for accountability in our democracy. No one—certainly not the chair of the Federal Reserve—is above the law. But this unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure," Powell said in a statement posted on the Fed's website. 

"This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress's oversight role; the Fed through testimony and other public disclosures made every effort to keep Congress informed about the renovation project. Those are pretexts. 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."

He added: "This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation."