US Fed chief warns of 'intimidation' after criminal subpoenas

Washington, United States: US prosecutors have opened an inquiry threatening a criminal indictment against theFederal Reserve, its chairman Jerome P...

Washington, United States: US prosecutors have opened an inquiry threatening a "criminal indictment" against the Federal Reserve, its chairman Jerome Powell revealed, denouncing new "threats and ongoing pressure" from the administration of President Donald Trump.

Powell said in a rare video statement Sunday that the US central bank received grand jury subpoenas Friday related to his Senate testimony in June, which concerned in part a major renovation project of Federal Reserve office buildings.

He dismissed the subpoenas as "pretexts" after months of bitter conflict with Trump, who has publicly excoriated the Fed for not cutting interest rates aggressively to bolster economic growth.

"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," Powell said.

"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," he said.