Criminal Inquiry Targets Powell Over Fed HQ Renovation (Full Transcript)

Federal prosecutors have opened a criminal inquiry into Federal Reserve Chair Jerome Powell and the Fed related to a $2.5 billion renovation of its Washington, D.C. headquarters. Powell described the probe as part of ongoing pressure from the administration. A second speaker argued the threat of charges stems from the Fed setting interest rates based on its assessment of the public interest rather than presidential preferences. The development is portrayed as an escalation of actions by Trump aimed at pushing the central bank to cut rates, including prior threats to sue Powell over renovation costs, which Powell said had evolved over time in his congressional testimony.

Prosecutors Open Inquiry Into Powell Over Fed Renovation

Negative: The passage centers on a criminal inquiry, threats of charges, and political pressure on the central bank, creating a tense and adversarial tone with implications of intimidation and controversy.

Question 1:
What prompted the reported criminal inquiry involving Fed Chair Jerome Powell?
Insider trading allegations
A $2.5 billion renovation of the Fed’s D.C. headquarters
Failure to raise interest rates
Unpaid federal taxes
Correct Answer:
A $2.5 billion renovation of the Fed’s D.C. headquarters

Question 2:
How did one speaker characterize the reason for the threat of criminal charges?
As punishment for lowering rates too quickly
As a response to the Fed prioritizing public-interest rate setting over presidential preferences
As a routine audit process
As retaliation for congressional testimony
Correct Answer:
As a response to the Fed prioritizing public-interest rate setting over presidential preferences

Question 3:
What action had Trump previously threatened related to the renovation?
To shut down the Fed
To sue Powell over the renovation costs
To replace the entire Federal Reserve Board
To cut the Fed’s budget by half
Correct Answer:
To sue Powell over the renovation costs