White House National Economic Council Director Kevin Hassett minimized the severity of the Department of Justice’s investigation into Fed Chair Powell on Friday.
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“The bottom line is, I expect, you know, Jay is a good man – I expect that there’s nothing to see here, that the cost overruns are related to things like asbestos, as he says,” Hassett told Fox News. “But I sure wish they had been more transparent.”
Why is Powell Being Investigated?
Several global economic leaders and Fed officials have criticized the investigation, which centers on the Fed’s $2.5 billion renovation of its Washington, D.C., headquarters and whether the spending was misappropriated. Federal Reserve Governor Michael Barr cautioned that the probe is an “assault on Fed independence,” while Chicago Federal Reserve President Austan Goolsbee said that waning Fed independence could lead to higher inflation.
Earlier this week, Powell framed the investigation as a cover-up for the Fed making monetary policy decisions independently instead of adhering to President Trump’s calls for lower rates.
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