Jerome Powell

[James48843]

From Newsweek:​

​

Jerome Powell Issues Defiant Message to Trump Over Criminal Probe​

Fed Chair Jerome Powell, who has faced immense pressure from the Trump administration due to his refusal to comply with President Donald Trump's demands for fiscal policy, revealed Sunday that the Department of Justice (DOJ) served the Federal Reserve with grand jury subpoenas.

In a statement posted on the Federal Reserve website, Powell explains that the DOJ served the subpoenas on Friday, " threatening a criminal indictment related to my testimony before the Senate Banking Committee last June."

"That testimony concerned in part a multi-year project to renovate historic Federal Reserve office buildings," Powell wrote.

"I have deep respect for the rule of law and for accountability in our democracy," Powell continued. "No one—certainly not the chair of the Federal Reserve—is above the law. But this unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure."

More:

Jerome Powell says DOJ threatened indictment over Senate testimony

President Donald Trump and Fed Chair Jerome Powell have publicly feuded over interest rates amid high inflation.

www.newsweek.com

POWELL is saying Trump is going after him criminally for not lowering rates. That could upset the market tomorrow.

 

[nasa1974]

POWELL is saying Trump is going after him criminally for not lowering rates. That could upset the market tomorrow.

That might raise a few eyebrows. The bully tactics are embarrassing.

 

[James48843]

“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.”

“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.”- Jerome Powell

Source:
Justice department opens investigation into Jerome Powell as Trump ramps up campaign against Federal Reserve
https://www.theguardian.com/busines...mpaign-against-central-bank?CMP=share_btn_url

 

[weatherweenie]

That might raise a few eyebrows. The bully tactics are embarrassing.

Remember when they accused Biden of weaponizing the DOJ?

 

[SteelSaving]

I will continue to ask, and I did it with the last administration too, if everything in the economy is great, why would the fed need to lower interest rates?
Wouldn't you want to see them remain the same or even be raised so that when the economy went south, we'd have a tool to help improve it?

Unless someone wants to pay me to take on debt, I suppose I could live with that.

 

[SteelSaving]

Trump claimed the cost of the project had reached $3.1 billion while Powell shook his head in disagreement.

"I haven't heard that from anybody at the Fed," Powell said. He then took the document Trump was holding that detailed the cost breakdown and said the figure the president was citing included another building whose construction was completed five years ago.

Two buildings for $3.1 billion? That is eyebrow raising to me, to be fair.

 

[weatherweenie]

I will continue to ask, and I did it with the last administration too, if everything in the economy is great, why would the fed need to lower interest rates?
Wouldn't you want to see them remain the same or even be raised so that when the economy went south, we'd have a tool to help improve it?

Unless someone wants to pay me to take on debt, I suppose I could live with that.

BINGO!

 

[JTH]

This is a self-funded fed project for the historic preservation + security upgrades + years of deferred maintenance, for 1930s buildings. You can't just decide to put up a ball room and call it a day, "legal" historic renovation is typically the most expensive kind of construction.

I'm not going to read into this too much, the President directly lied on camera and Powell's accurate rebuttal embarrassed him. This is a petty attempt at retribution and yet another ethical abuse of power.

 

[SteelSaving]

Dealing with building renovations is my day job, including historical properties.

$3.1 billion is a lot of money for two building renovations, multi-year/multi-phase or not.

 

[nasa1974]

I worked in the construction office at NASA for 17 years. $3.1 billion is a lot of money. We would have to see what the contract says and how the cost increases were approved.

 

[Boghie]

It appears that the FED funds their operations via interest from the Federal Treasuries they bought - not from the taxpayer and not from the Federal Government. That includes the renovation of these buildings.

This may surprise some folks around here, but I would tell the Administration to "Sod Off Swampy".

They can gold plate their buildings if they want. They bought the notes, by doing so they kept interest rates down, and there should be no problem using their income any way they wish. We don't fund them. This is no different than JP Morgan spiffing up their bank buildings. The only role the Gubmint has is picking the chair - and, it should stay that way.

 

[nasa1974]

Found some interesting articles on the renovations. There was a lot of asbestos and lead that had to be removed. That will drive up costs.

This is a quote from Fortune about the renovations. Unfortunately, this was the only part I could read without subscribing to Fortune.

"The White House’s recent criticism of the Federal Reserve’s headquarters renovation project has highlighted the central bank’s sources of funding. Unlike federal departments that receive taxpayer dollars via appropriations from Congress, the Fed is self-funded, largely via interest income from government securities it holds."

Another interesting article.

Federal Reserve’s Renovation of Two Historic Buildings

The Federal Reserve Board of Governors in Washington DC.

www.federalreserve.gov

 

[SteelSaving]

With what money does the federal reserve purchase its treasuries?

Edit:
I suppose like this:

HERE

The Fed purchases existing bonds from a select group of financial institutions known as primary dealers (large banks and securities firms). When the Fed buys a bond, it pays by crediting the primary dealer’s reserve account held at the Federal Reserve. This action injects new bank reserves into the financial system, expanding the money supply.

 

[Boghie]

With what money does the federal reserve purchase its treasuries?

Edit:
I suppose like this:

HERE

It normally doesn't - or, at least not too much. However, during 2008 and COVID it did. It probably does do a bit of Treasury purchase around the edges to keep things running smooth. Or, perhaps it does a little of it as an investment to fund itself. It's not nefarious.

$3.1 Billion does seem like an awful lot - but if I ain't paying for it I don't care. The FED is basically a private banking institution, with a bit of Federal control. It exists to make certain our Gubmint does not go Full Hyper-Inflation on us. The Trumpster is mad because the Gubmint has to pay more for borrowing money and because business has to pay more to borrow money than when the FEB was buying Treasuries in bulk.

Folks, the interest rates as they stand now are NORMAL and the FED doesn't want, nor does it need, to buy Treasuries en-mass.