By Jerald Jimenez
The president of the Federal Reserve (Fed), Jerome Powell, stated on Wednesday that the independence of the organization “is at risk” due to the correct offensive undertaken by Donald Trump’s administration, after the opening of a criminal investigation against the economist, which is indicated by various instances as an action for political reasons.
During a press conference, Powell was asked about the financial institution’s current situation. “I think (the independence of the Fed) is at risk,” said the 73-year-old official in a press conference when asked about the financial institution’s current situation.
Likewise, the economist directly linked the judicial processes with an attempt to influence the decisions of the Federal Reserve: “I think that these legal attacks, if you want to call them that, that I have referred to, are punishing the institution because of these issues.”he added.
“Actually, it’s not so much about independence per se, but rather the ability to carry out monetary policy, to formulate it, without political considerations. That’s what we’re talking about. And we’ve had to act in that sense, managing to be successful so far. But this is not over. None of this is over yet,” Powell added.
Powell’s departure from office and investigations
Although Powell will leave the Fed presidency on May 15, he announced that he will remain as a member of the board of governors, decision that will remain at least until the investigation into alleged fraud in the construction of the headquarters of the body “concludes definitively and transparently.”
Said criminal investigation, promoted by the Department of Justice, was dismissed last week after the intervention of a Republican senator. However, the District of Columbia prosecutor, Jeanine Pirro, stated that she will file charges again if new irregularities arise. For his part, a federal judge in Washington previously determined that the Government did not present evidence to justify the criminal process, describing the subpoenas as “improper.”
Regarding the future of the Fed, Powell expressed his support for Kevin Warsh as a potential successor, highlighting that “he has the capabilities and abilities” to generate consensus in the board of governors, an element that he described as a “key skill.”
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