<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The chairman of the US Federal Reserve says he will "stand firm in the face of threats" amid a fresh eruption in his feud with US President Donald Trump.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Department of Justice has threatened Jerome Powell with a "criminal indictment" over his comments at a Senate Banking Committee meeting in June last year, where the cost of rebuilding two federal government-owned buildings was discussed.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It comes after months of growing tensions between the Fed and Trump, which became public when </span><a href="https://www.9news.com.au/world/trump-and-powells-feud-just-exploded-into-the-public-and-then-trump-backed-off/8b4eedf0-e1b7-468f-b9c0-d025b1f3edda" rel="" target="_blank" title="he and Powell clashed on live television"><span>he and Powell clashed on live television</span></a><span>.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/bondi-junction-stabbing-hero-police-officer-amy-scott-diagnosed-with-cancer/39c8559c-60e0-4afc-902a-03f3f5a17bda" rel="" target="_blank" title="'Devastated': Hero police officer who stopped Bondi Junction stabbing diagnosed with cancer"><strong><span>'Devastated': Hero police officer who stopped Bondi Junction stabbing diagnosed with cancer</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Federal Reserve is the equivalent of the Reserve Bank of Australia and sets the official cash rate in the US.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Since returning to office at the start of last year, Trump has repeatedly called for </span><a href="https://www.9news.com.au/world/donald-trump-says-federal-reserve-chair-jerome-powell-termination-cannot-come-fast-enough/0c4c1745-b6ec-489e-a0ce-841f7482f230" rel="" target="_blank" title="Powell to be fired"><span>Powell to be fired</span></a><span> and replaced with someone more willing to drastically cut the US cash rate.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In an extremely rare statement issued late on Sunday night (Monday AEST), Powell said he had "deep respect for the rule of law and for our accountability in our democracy", but this threat of an indictment was not about a blowout in construction costs.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/world/us-federal-reserve-chairman-jerome-powell-served-a-subpoena-from-department-of-justice-over-renovations/88c919f1-dae8-41ba-b3f0-09d8b1849915" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/bondi-hero-ahmed-al-ahmed-recalls-seeing-new-angle-of-his-heroic-act-during-shooting/6248418b-8379-4867-88a6-ba569487a017" rel="" target="_blank" title="Bondi hero Ahmed Al Ahmed reveals 'trauma' after seeing video of confrontation with gunman"><strong><span>Bondi hero Ahmed Al Ahmed reveals 'trauma' after seeing video of confrontation with gunman</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"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.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"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."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Fed in the second half of last year </span><a href="https://www.9news.com.au/world/us-federal-reserve-cuts-interest-rates/1d5e011a-a587-4964-ab44-a5e804ff1dcd" rel="" target="_blank" title="lowered rates"><span>lowered rates</span></a><span> three times in row, though officials have recently said they were unlikely to lower rates again for a while.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Trump's pressure campaign has included a barrage of personal insults at Powell and an ongoing effort to </span><a href="https://www.9news.com.au/world/donald-trump-lisa-cook-federal-reserve-usa-united-states/3f133d4d-6259-42a1-9570-8e4a843ad3ef" rel="" target="_blank" title="oust Fed Governor Lisa Cook"><span>oust Fed Governor Lisa Cook</span></a><span>, appointed by then-president Joe Biden.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The federal probe comes as Trump prepares to announce his pick for who will replace Powell once his term ends in May. The decision will cap a months-long search process for arguably the most influential role in the global economy.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><em><span>More to come</span></em><span>.</span></div></div>