by ZeroHedge
Not content with launching a dizzying cascade of international conflicts, Trump just lobbed a nuke at the Fed.
While Trump’s vendetta against the Fed’s Lisa Cook set for a January showdown before the Supreme Court, the Trump admin dramatically raised the stakes on Sunday when the NYT first reported, and minutes later Fed Chair Jerome Powell confirmed that the US central bank had been served grand jury subpoenas from the Justice Department threatening a criminal indictment, in what Bloomberg said was a dramatic escalation of the Trump administration’s attacks on the Fed.
As the NYT first reported, the US attorney’s office in the District of Columbia has opened a criminal investigation into Powell over the central bank’s renovation of its Washington headquarters and whether the Fed Chair lied to Congress about the scope of the project. The inquiry, which includes an analysis of Powell’s public statements and an examination of spending records, was approved in November by Jeanine Pirro, a longtime ally of President Trump who was appointed to run the office last year, the NYT sources said.
Attorney General Pam Bondi has directed US attorneys offices to look into cases of potential taxpayer abuse, said one of the NYT sources. In comments broadcast by NBC, Trump said that the DOJ’s Fed subpoenas “nothing to do with interest rates” and denied any involvement in the legal matter.
The investigation escalates Trump’s long-running feud with Powell, whom the president has continually attacked for resisting his demands to slash interest rates significantly (and, in retrospect, Trump was right as the Fed did in fact cut rates at its last 3 meetings having belatedly observed the dramatic deterioration in the labor market without an offsetting surge in inflation). The president has threatened to fire the Fed chair – whom he nominated for the position in 2017 – and raised the prospect of a lawsuit against him related to the $2.5 billion renovation, citing “incompetence.”
In a striking public response to the NYT report, Powell…
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