Behind Trump vs. Powell Is a Battle Over US Empire’s Future - Jacobin

Breaking News: DOJ Opens Criminal Investigation into Jerome Powell

In a shocking turn of events, the Department of Justice (DOJ) has announced that it is launching a criminal investigation into Federal Reserve Chair Jerome Powell. The allegations stem from concerns that Powell may have misled Congress about the cost of refurbishing the Fed's headquarters.

What Happened?

According to reports, the DOJ's investigation was triggered by complaints raised by lawmakers and other stakeholders regarding Powell's testimony before Congress. Specifically, it is alleged that Powell failed to provide accurate information about the estimated costs associated with renovating the Fed's headquarters in Washington D.C.

A Misleading Statement?

The controversy centers around a statement made by Powell during his appearance before Congress in November 2022. At the time, he was questioned about the cost of refurbishing the Fed's headquarters, which had been damaged in a fire several years prior. Powell stated that the estimated cost of repairs would be between $200 million and $300 million.

However, subsequent reports have revealed that this estimate has since ballooned to over $400 million. This discrepancy has raised eyebrows among lawmakers and observers, who claim that Powell's initial response was misleading or inaccurate.

What Does This Mean?

The DOJ's decision to launch a criminal investigation into Powell marks a significant escalation in the controversy surrounding his testimony. If found guilty, Powell could face serious consequences, including fines, penalties, or even imprisonment.

Furthermore, this development has significant implications for the Federal Reserve and the US economy as a whole. As the central bank's chair, Powell plays a critical role in shaping monetary policy and setting interest rates. Any perceived misdirection or dishonesty on his part could undermine public trust in the Fed and contribute to market volatility.

Background

Powell's tenure as Federal Reserve Chair began in 2018, when he was nominated by President Donald Trump. Prior to joining the Fed, Powell had a distinguished career at Goldman Sachs and served as a member of the Fed's Board of Governors from 2006 to 2012.

During his time as Fed chair, Powell has been a key player in shaping monetary policy, including implementing expansionary measures during the COVID-19 pandemic. However, he has also faced criticism for his handling of certain economic issues, such as inflation and labor market conditions.

What's Next?

The DOJ's investigation into Powell is ongoing, and it remains to be seen how this will unfold. In the meantime, lawmakers and observers are watching closely to see how this situation plays out.

For Powell himself, this development presents a significant challenge. As the nation's top banking regulator, he has a duty to provide accurate information and maintain public trust in his institution. If found guilty of any wrongdoing, he could face severe consequences that would not only impact his own reputation but also damage the credibility of the Federal Reserve.

The Impact on Markets

The news of Powell's potential wrongdoing has already sent shockwaves through financial markets. The Dow Jones Industrial Average and S&P 500 indices have seen significant fluctuations in recent days, with investors increasingly nervous about the potential for further market volatility.

As the situation continues to unfold, it is essential for investors and policymakers alike to closely monitor developments and adjust their strategies accordingly. With Powell's reputation and credibility hanging in the balance, the stakes are high.

Conclusion

The DOJ's decision to launch a criminal investigation into Jerome Powell marks a significant turning point in the controversy surrounding his testimony. As this situation continues to unfold, one thing is clear: the future of monetary policy, the Federal Reserve's credibility, and the US economy as a whole will be watching with bated breath.

Stay tuned for further updates on this developing story as more information becomes available.

Timeline of Events

• November 2022: Jerome Powell testifies before Congress regarding the cost of refurbishing the Fed's headquarters.
• December 2022: Reports surface indicating that the estimated cost of repairs has ballooned to over $400 million, contradicting Powell's initial estimate.
• January 11, 2023: The DOJ announces its decision to launch a criminal investigation into Jerome Powell for allegedly misleading Congress.

Key Players

• Jerome Powell: Chairman of the Federal Reserve
• Department of Justice (DOJ): Investigating agency

Related Topics

• Monetary policy
• Federal Reserve
• Jerome Powell
• Congressional testimony
• Financial markets