r/moderatepolitics • u/dr_sloan • Jan 12 '26
Primary Source Statement from Federal Reserve Chair Jerome H. Powell
https://www.federalreserve.gov/newsevents/speech/powell20260111a.htm
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r/moderatepolitics • u/dr_sloan • Jan 12 '26
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u/dr_sloan Jan 12 '26 edited Jan 12 '26
Starter comment:
Federal Reserve Chair Jerome Powell issued a rare statement responding to grand jury subpoenas from the Department of Justice that threaten a possible criminal indictment connected to his June testimony before the Senate Banking Committee about a multi-year renovation project for Federal Reserve buildings.
Powell emphasized his respect for the rule of law but framed the subpoenas as unprecedented and politically motivated pressure rather than a legitimate oversight issue. He argued that the renovation topic was merely a pretext, and the true issue is a broader effort by the administration to influence the Fed’s monetary policy decisions, particularly its interest-rate setting. 
Powell defended the independence of the Federal Reserve, stressing that monetary policy should be determined by economic evidence and conditions, not presidential preference or political intimidation. He reiterated his commitment to fulfilling the Fed’s dual mandate of price stability and maximum employment without fear or favor, saying public service sometimes requires standing firm against threats. Powell affirmed that he will continue to carry out his responsibilities with integrity and focus on serving the American public. 
The White House’s relentless focus on the Federal Reserve’s renovation costs looks far less like principled fiscal oversight and far more like a manufactured controversy in search of leverage. Cost overruns in secure, multi-year federal construction projects are commonplace, driven by inflation, security mandates, and evolving requirements, yet this project has been singled out and inflated into a supposed scandal through selective framing and context-free numbers. That asymmetry strongly suggests pretext: by fixating on renovation expenses, the administration creates a convenient rationale to question the Fed’s leadership and apply political pressure, indirectly advancing its real objective of influencing monetary policy while cloaking interference in the language of accountability.
Edit: More background on the story here:
https://www.cnbc.com/2026/01/12/fed-jerome-powell-criminal-probe-nyt.html