Jerome Powell claps back at Trump's 'unprecedented' investigation: 'Ongoing pressure'

Federal Reserve Chairman Jerome Powell responded to President Donald Trump and one of his allies, a prosecutor, on Sunday after receiving a subpoena to appear before a grand jury.

Powell said he received a subpoena from U.S. Attorney Jeanine Pirro of Washington, D.C. to testify about comments he made to a Senate committee last June. The investigation is the latest escalation in the fight between Trump and the Federal Reserve, which he sees as too hesitant to embrace his low-interest-rate monetary policy.

Trump has tried to remove Federal Reserve Governor Lisa Cook over alleged mortgage fraud. Cook appealed Trump's attempts to fire her, and the Supreme Court is set to hear arguments in the case on January 21.

He has also threatened to remove Powell over his management of the Federal Reserve headquarters renovation. Trump has claimed that Powell mismanaged the budget for the renovation, but experts have said Trump's claims have no basis in fact.

"This unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure," Powell said in a statement.

"This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings," Powell added. "It is not about Congress's oversight role; the Fed, through testimony and other public disclosures, made every effort to keep Congress informed about the renovation project. Those are pretexts. The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President."

"This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation," he continued.