On Sunday, Federal Reserve Chair Jerome Powell said the Department of Justice had threatened the central bank with “criminal indictment” over his testimony before Congress, relating to its building renovation costs.

These Are Just ‘Pretexts’

This marks a major escalation in tensions between President Donald Trump and the central bank, following months of relentless attacks for not cutting rates aggressively, and repeated calls for Powell’s removal, undermining the independence of the Federal Reserve.

In his statement, Powell said the Fed's $2.5 billion headquarters renovation and the related grand jury subpoenas are merely “pretexts,” arguing that the real conflict centers on control of U.S. monetary policy.

“I have deep respect for the rule of law and for accountability ...