MOSCOW, January 13 (Bernama-Sputnik/RIA Novosti) -- The US Justice Department's investigation into Federal Reserve Chairman Jerome Powell has forced Fed leadership to unite against attacks from US President Donald Trump, reported Sputnik/RIA Novosti quoting the Financial Times newspaper.
The report cited former senior Fed officials.
On Sunday, Powell announced that the US Justice Department was threatening him with criminal charges in connection with his congressional testimony regarding the renovation of the Fed headquarters.
However, the Fed chairman himself believes these charges are related to his refusal to follow US President Donald Trump's demands to lower interest rates.
Trump's pressure could backfire and result in Powell remaining as Fed Chairman until 2028, when his term ends, the report said on Monday.
"Those that are worried about threats to independence may be more inclined to stay so that there are fewer seats available for Trump to gain control of the board," former Fed Chair Janet Yellen told the newsapaper.
Trump's actions have reduced to zero the likelihood of Powell leaving the Fed after he steps down as chair, former senior Fed official David Wilcox reportedly noted.
Trump has repeatedly criticised Powell for his slow pace of interest rate cuts and also mentioned the possibility of firing the Fed chairman. Trump has also argued that Powell's actions are costing the US trillions of dollars and accused him of conducting "the most incompetent, or corrupt, renovations of a building" in history.
On Monday, Fox Business reported that Trump is considering BlackRock's Chief Investment Officer of Global Income Rick Rieder for the Fed chair position and plans to interview him on Thursday at the White House.
--BERNAMA-SPUTNIK/RIA NOVOSTI
