Federal Reserve Chair Jerome Powell Urged to Resign Amid DOJ Investigation

HUNT VALLEY, Md. — A Republican senator has suggested that Federal Reserve Chair Jerome Powell resign to avoid criminal charges. North Dakota’s Kevin Cramer said in a Fox Business interview that Powell should reach a deal with the Department of Justice to end its investigation.

DOJ Investigation Into Powell

Washington, D.C.’s federal prosecutorial office, led by U.S. Attorney Jeanine Pirro, is investigating statements Powell made to Congress last year. Pirro said she attempted to discuss cost overruns of renovations to the Federal Reserve headquarters with Powell but had to use the legal process after he failed to respond. Powell confirmed he received grand jury subpoenas last week related to his testimony.

Powell Responds to Legal Pressure

Federal Reserve Chair Jerome Powell stated he respects the rule of law and accountability in democracy. He emphasized that no one, including the chair of the Federal Reserve, is above the law. Powell also noted that the investigation should be viewed in the broader context of administration threats and ongoing pressure.

Trump’s Push for Powell’s Resignation

President Donald Trump has repeatedly urged Powell to resign, claiming he has harmed the country by refusing to lower interest rates. Trump said he would fire Powell if possible, though it remains unclear whether the president has the authority to do so, as the chair can only be dismissed for cause. Powell has defended his decisions, pointing to the negative effects of Trump’s economic policies.

Independence of the Federal Reserve

Powell said the DOJ investigation is a consequence of his reluctance to act at the president’s direction. He stressed that the Federal Reserve must remain independent, setting interest rates based on evidence and economic conditions rather than political pressure or intimidation.

Federal Reserve Chair Jerome Powell faces mounting pressure as the DOJ investigates his congressional testimony. While Senator Kevin Cramer and President Trump have urged him to resign, Powell insists the independence of the Federal Reserve must be preserved. The situation highlights the tension between political influence and economic decision-making surrounding federal reserve chair jerome powell.