Reed Statement on Trump Admin Pausing Bogus Probe into Fed Chair Powell

PROVIDENCE, RI - Today, the Trump Justice Department announced it is 'closing' its highly-politicized probe into Federal Reserve Chairman Jerome Powell, one of several dubious investigations undertaken by the Justice Department into President Donald Trump's perceived adversaries. However, Trump officials also said they would not hesitate to reopen the investigation in the future.

U.S. Senator Jack Reed (D-RI), a member of the Senate Banking, Housing, and Urban Affairs Committee, issued the following statement:

"This bogus criminal probe was only launched because Chairman Powell did his job, maintained Fed independence, and refused to cave to President Trump's demands.

"While the Trump Administration was forced to retreat after being chastised by both Democratic and Republican members of the Senate Banking Committee, this case sent a chilling signal and I am concerned about U.S. Attorney Jeanine Pirro's mixed messaging. Earlier this week, she stated she was plowing ahead with the investigation. Now she claims it's being closed but could be reopened. The facts and the law haven't changed. The only thing that's changed is President Trump wants Kevin Warsh confirmed.

"Dropping or pausing this case is not an end to President Trump's strongarm tactics against the Fed, rather it is the beginning of a new, uncertain chapter. I am concerned Mr. Warsh lacks the same level of independence as Chair Powell. President Trump's dysfunction and recklessness have created a drag on the U.S. economy. Americans are right to be concerned about Trump's ongoing attacks on the Fed's independence, the Fed's ability to remain apolitical, and the stability and resilience of the U.S. economy.

"The U.S. Attorney said she can restart the criminal probe against Powell if she wants. And another politically-charged criminal probe remains ongoing against Fed Governor Lisa Cook, with whom President Trump disagrees on policy.

"Lots of presidents disagree with Fed Chairs. But only one has attempted to criminally prosecute them for it. At this critical moment, America needs a firewall against hyper-politicized monetary policy. If President Trump is able to bend the central bank to his will it will cause all sorts of long-term economic problems for the American people.

"I commend Chair Powell for his many years of service and for steering the Fed through these very tough times and hope he will stay on as a Fed governor. For the sake of our economy and the American people's economic well-being, we need strong, independent voices at the Fed."

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