Federal Reserve Chair Jerome Powell is at the centre of a Department of Justice (DOJ) probe over his congressional testimony regarding the renovation costs. Despite this development, crypto traders are currently betting against the Fed chair facing a criminal indictment, even as U.S. President Donald Trump continues to pressure the Fed to lower rates.
Jerome Powell Unlikely To Be Federally Charged: Polymarket
Polymarket data shows only a 12% chance that the DOJ will charge the Fed chair by June 30, around the time his term ends. Crypto traders are making these bets despite the criminal investigation into the Fed chair.
Source: PolymarketAs CoinGape reported earlier, the DOJ is conducting a criminal investigation into Jerome Powell’s testimony before the Senate Committee and whether he committed perjury. This development comes months after Rep. Anna Paulina Luna criminally referred the Fed chair to the Justice Department for allegedly lying under oath.
Notably, the criminal probe into the Fed chair comes as Trump continues to pressure the Fed to lower interest rates drastically. The president has also at different times stated that he was considering suing the Fed chair over the renovation costs and has constantly criticized him for his refusal to make larger cuts.
However, Trump said during an interview with NBC News that he did not know about the DOJ’s investigation into Jerome Powell. He again criticized the Fed chair as not being very good at the U.S. central bank.
The Fed chair becomes the second Fed official facing a DOJ probe, after the Justice Department launched an investigation last year into whether Fed Governor Lisa Cook committed mortgage fraud. Meanwhile, this development comes ahead of the January FOMC meeting, where the committee is likely to hold rates steady despite the president’s calls for more cuts.
Statement On The DOJ Criminal Investigation
In a statement confirming that the DOJ served the Fed with grand jury subpoenas, Jerome Powell suggested that the criminal investigation was politically motivated. The Fed chair noted that the subpoenas had threatened a criminal indictment related to his testimony before the Senate Banking Committee.
He claimed that the threat was not about his testimony or the renovation project, but about the Fed setting interest rates based on its assessment of what will serve the public, rather than following the president’s preferences. This is notably the first time Jerome Powell has directly addressed Trump’s push for lower interest rates.
The Fed chair further remarked that the investigation was about whether the U.S. central bank can continue to set interest rates based on evidence and economic conditions, or whether, instead, it will allow political pressure or intimidation to determine monetary policy. “I will continue to do the job the Senate confirmed me to do, with integrity and a commitment to serving the American people,” Jerome Powell concluded.
Source: https://coingape.com/trump-vs-powell-crypto-traders-bet-against-fed-chairs-indictment-despite-doj-probe/
