President Donald Trump is about to decide the fate of a blockbuster lawsuit against Federal Reserve Chair Jerome Powell. He is diligently considering the ramifications of this decision. Now, new allegations have emerged accusing Powell of committing perjury during a congressional hearing in June. Newly elected Republican Representative Anna Paulina Luna from Florida’s 13th district is calling for a criminal investigation into Powell’s activities.
Powell, who in recent weeks testified under oath at the Congressional bubble, made some very interesting statements rebutting the Fed’s renovation plans, which has scrutinized the Congressional bubble. Just last month he joined then President Trump on the Fed’s construction site tour, discussing multibillion dollar upgrades to the Fed’s historic headquarters. Given that high price, Trump slammed the renovation process, calling it “a $50 million fix-up.”
“I am, though, considering allowing a major lawsuit against Powell to proceed because of the horrible and grossly incompetent job he has done in managing the construction of the Fed Buildings,” Trump stated, highlighting his frustrations with the renovations.
The still-unfolding inquiry into Powell’s testimony, which is precisely what has lawmakers so alarmed. Representative Luna’s call for an inquiry reflects a growing discontent among some Republican members regarding the Federal Reserve’s operations. Trump’s administration has expressed dissatisfaction with Powell’s management of the Fed, with Trump remarking, “Fortunately, the economy is sooo good that we’ve blown through Powell and the complacent Board.”
Now, discussions about Powell’s legal challenges are reaching a boiling point. At the very same time, Trump is preparing for a historic leadership transition at the Federal Reserve. Most importantly, he is expected to announce Powell’s successor considerably earlier than usual—with a handful of names in serious contention. On the steering committee is their former Fed Governor Kevin Walsh. It includes National Economic Council Director Kevin Hassett and current Fed Governor Christopher Waller.
The economy is doing amazing,” Trump said. In doing all that, he showed his deep, if misguided, confidence in his administration’s economic policies while taking Powell to task.