Federal Reserve Chairman Jerome Powell revealed today that the central bank had been subpoenaed by the Justice Department, blasting the move as part of President Donald Trump’s extraordinary pressure campaign on United States monetary policy decisions.

Powell said in a statement that the bank received grand jury subpoenas on Friday local time related to his Senate testimony in June, which had been about a major renovation project of Federal Reserve office buildings.

He dismissed the possible threat of a criminal indictment over his testimony or the renovation project as “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,” Powell said in a statement.

“This unprecedented action should be seen in the broader context of the Administration’s threats and ongoing pressure,” Powell said.

The Fed has a dual mandate to keep prices stable and unemployment low, and its main tool in doing so is by setting a key interest rate that influences the cost of borrowing across the economy.

Trump has consistently pressured Powell and the central bank to move faster in lowering interest rates.

Powell’s term as chairman of the Federal Reserve ends in May, and Trump told Politico in an interview last month that he would judge Powell’s successor on whether they immediately cut rates.

-Agence France-Presse