DOJ Official Admits No Evidence Against Jerome Powell Found Prior to Launching Probe: Report

The Justice Department admitted to a federal judge that they had no evidence of criminal wrongdoing, but were investigating Fed Chair Jerome Powell anyway, according to a report.

The admission by Assistant U.S. Attorney Andrew Massucco came during questioning by Chief Judge James Boasberg at a March 3 hearing, CBS News reported based on a transcript of the hearing.

Earlier this year, the Justice Department launched an investigation of a $2.5 billion renovation project at the Federal Reserve.

Among the supposed “crimes” being investigated was that Powell had lied to Congress. CBS reported that, according to the transcript, Massucco was asked what false statements Powell had made. “Well, we don’t know is my first answer,” Massucco said. “However, there are certain areas that he addressed that caused concern.”

When asked about potential fraud or misconduct related to the renovation project, Massucco again demurred: “Again, we do not know at this time. However, there are 1.2 billion reasons for us to look into it.”

On March 13, Boasberg crippled the investigation when he quashed subpoenas related to it. The Justice Department appealed that ruling.

In the March 13 ruling, Boasberg stated that the government had no evidence and that the investigation was a harassment campaign against the Fed chair. Boasberg wrote that the subpoenas were meant to pressure Powell to lower interest rates or resign, writing that “the Government has offered no evidence whatsoever that Powell committed any crime other than displeasing the President.”

The Federal Reserve sets the interest rate that banks charge each other. Raising interest rates can help slow inflation, while lower interest rates can help spur economic activity. Although the president appoints the Fed chair, the body works independently of the president.

President Trump has repeatedly demanded lower interest rates and publicly said he wanted Powell “out,” calling him a “TOTAL LOSER.” In his ruling, Boasberg references over 100 such social media posts made by the president against Powell.

“There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will,” Boasberg wrote.