Fed Chair Investigation
The Department of Justice (DOJ) has opened an investigation into Federal Reserve Chair Jerome Powell. The alleged cause for the investigation is the veracity of Chairman Powell’s congressional testimony about the ongoing renovation of the Federal Reserve’s headquarters, a project which has been at the center of an ongoing feud between U.S. President Donald Trump and Chairman Powell. The Chairman, however, released a two-minute video statement claiming the investigation is due to the President’s disagreement with the Federal Reserve over interest rates.
Analysis and eternal perspective: Interest rate policy is important. Truthfulness before Congress is important. Limitations on governing power is important.
There is a lot going on in this story, and much of it competes with itself. It is clear the President and the Fed Chair have both policy and personal differences. It is disputed whether those differences are the motivation behind the newly opened investigation. This is a regular occurrence these days, and as always, we begin with a reminder to heed Proverbs 18:17 in considering this story: “In a lawsuit the first to speak seems right, until someone comes forward and cross-examines.”
Should this investigation continue, one of the central questions will be determining the extent of the President’s authority over it. The Federal Reserve was created by Congress in 1913 and is designed to operate independent of political forces. That said, Article II of the U.S. Constitution gives the president wide authority over the executive branch. While the personal feud is likely to dominate the headlines, it is the jurisdiction dispute that will be at the center of any legal proceedings.
Jesus followers would do well to regularly return to Romans 12:18 as this story progresses: “If it is possible, as far as it depends on you, live at peace with everyone.”
It won’t always be possible or depend on you, but when it does, choose peace over conflict.
The preceding article originally appeared in Thann’s “The Equipped” Weekly Newsletter. For more information on Thann’s weekly email, click here.