The Dictatorship
Trump threatens to fire Powell if the Fed Chair remains with central bank after his term ends
WASHINGTON (AP) — Federal prosecutors made an unannounced visit this week to a construction site at Federal Reserve headquarters that is the focus of an investigation into a $2.5 billion renovation projectaccording to two people familiar with the visit.
Two prosecutors and an investigator from U.S. Attorney Jeanine Pirro’s office were turned away on Tuesday by a building contractor and referred to Fed attorneys, one of the people said. The two people familiar with the visit spoke on condition of anonymity because they weren’t authorized to publicly discuss an ongoing investigation.
The visit underscores that the Trump administration is not backing down from its investigation of the Fed and its chair, Jerome Powell, even though the probe has delayed the confirmation of a new chair nominated by President Donald Trump. The investigation is focused on cost overruns and brief testimony about the project last summer by Powell. Trump confirmed in an interview that aired Wednesday on Fox Business that he wants to continue the probe.
Last month, during a closed-door hearing before a federal judge, a top deputy from Pirro’s office conceded that they hadn’t found any evidence of a crime in their investigation of the headquarters project.
Robert Hur, an attorney for the Federal Reserve board of governors, sent an email to Pirro’s prosecutors about their visit and their request for a “tour” to “check on progress” at the construction site. Hur’s email, which The Associated Press has viewed, noted that U.S. District Judge James Boasberg concluded that their interest in the Federal Reserve’s renovation project was “pretextual.”
AP AUDIO: Prosecutors sought access to Federal Reserve building as Trump threatens to fire Powell
AP Washington correspondent Sagar Meghani reports on more drama surrounding a federal probe of a massive construction project at the Federal Reserve’s headquarters.
“Should you wish to challenge that finding, the courts provide an avenue for you; it is not appropriate for you to try to circumvent it,” Hur wrote.
Republican Tillis is key vote
Sen. Thom Tillis, a North Carolina Republican who is a key member of the Senate Banking Committee, has vowed to vote against Kevin WarshTrump’s nominee to replace Powell as Fed chair, until the investigation is dropped. With the committee closely divided on partisan lines, Tillis’ opposition is enough to block Warsh from receiving the committee’s approval.
Tillis on Wednesday criticized the investigation as “bogus, ill-timed, ill-informed” and repeated that seven Republican members of the banking panel have said they do not believe Powell committed a crime when he testified last June.
Tillis also said there aren’t enough votes on the committee or in the broader Senate to do an end-run around the committee and get Warsh confirmed some other way.
“There really is no path,” he told reporters, adding that Pirro and her aides were “asleep at the switch” because the investigation has essentially delayed Powell’s departure from the Fed, despite Trump’s obsessive criticism of the Fed chair. Powell has now said he won’t leave until the investigation is resolved.
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Tillis suggested Pirro blindsided the White House with her investigation. “They should have consulted with the White House, because I’m sure if they would have, (the White House) would have said, ‘no, we can wait,’” until Powell steps down.
But Kevin Hassett, the Trump administration’s top economist, said Wednesday that the Justice Department got involved because “the president wanted to investigate the cost overrun,” Axios reported.
The Banking panel said Tuesday that it will hold a hearing on Warsh’s nomination April 21. Powell’s term as Fed chair ends May 15, but Powell said last month he would remain as chair until a replacement is named.
Powell is serving a separate term as a member of the Fed’s governing board that lasts until January 2028. Chairs typically leave the board when their terms as chair end, but they can remain on the board if they choose. Powell has said he won’t leave until the investigation is resolved. If he remains it would deny Trump the opportunity to appoint someone else to the seven-member board.
Late Tuesday Tillis posted a link on social media to The Wall Street Journal’s article on the visit below an image of the Three Stooges and wrote, “The U.S. Attorney’s Office for D.C. at the crime scene.”
Investigation centers on building renovations
The investigation centers on an appearance by Powell before the Banking Committee last June, when he was asked about cost overruns on the renovations. The most recent estimates from the Fed suggest the current estimated cost of $2.5 billion is about $600 million higher than a 2022 estimate of $1.9 billion.
“It is probably corrupt, but what it really is, is incompetent,” Trump said. “Don’t you think we have to find out what happened there?”
The president’s support for the investigation threatens a timeframe set out by Sen. Tim Scott, a South Carolina Republican who chairs the Banking Committee. Scott said Tuesday on Fox Business that he believed the investigation would be “wrapped up in the next few weeks,” allowing Warsh to be confirmed soon after.
Threat to fire Powell
News of the unannounced visit by prosecutors comes as Trump has again threatened to fire Powell, if the Federal Reserve Chair decides to stay on the central bank’s governing board after his term as chair expires next month.
“Well then I’ll have to fire him, OK?” Trump said.
Trump has for months wanted to remove Powell, saying he has been too slow in orchestrating interest rate cuts that would give the U.S. economy a quick boost. Powell has said the investigation is a pretext to undermine the Fed’s independence to set rates.
Sen. Josh Hawley, a Missouri Republican, said Trump can only fire Powell “for cause,” meaning some kind of misconduct, “so that’s a pretty tall order.”
Supreme Court weighing another Trump removal
Trump’s threat to fire Powell comes as the Supreme Court is weighing the president’s effort to remove another central bank governor, Lisa Cook. Lower courts have so far allowed Cook to remain in her job while her legal challenge to the firing continues. The Supreme Court also seemed likely to keep her on the Fed when the court heard arguments in January. A decision could come any time.
The issue in Cook’s case is whether allegations of mortgage fraud, which she has denied, is a sufficient reason to fire her or a mere pretext masking Trump’s desire to exert more control over U.S. interest rate policy.
The Supreme Court has allowed the firings of the heads of other governmental agencies at the president’s discretion, with no claim that they did anything wrong, while also signaling that it is approaching the independence of the nation’s central bank more cautiouslycalling the Fed “a uniquely structured, quasi-private entity.”
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AP Writers Seung Min Kim, Mark Sherman, Paul Wiseman, Alanna Durkin Richer, and video journalist Nathan Ellgren contributed to this report.
Writer E. Jean Carroll finally has the $5 million — plus interest — that a jury ordered President Donald Trump to pay her in damages in one of her two cases against him, after Trump fought the payout for years.
Court records posted Tuesday show a transfer of $5,625,005.48 to Carroll’s legal team took place the day before.
Carroll received the money more than three years after a jury found that the president was liable for sexually abusing her in a Manhattan department store in 1996, and then for defaming her on social media. Trump has repeatedly appealed the judgment to no avail — including petitioning the Supreme Court multiple times — and last week launched a last-ditch attempt to block her from getting the money.
Last Tuesday, his legal team filed a briefrequesting that the disbursement of the damages be halted, pointing to his pending request for the Supreme Court to reconsider its refusal to hear his appeal.
A federal judge nevertheless ordered Wednesday that Carroll be paid, prompting a swift appeal from Trump and a motion for an emergency administrative stay on the disbursement of the funds.
That request was denied.
“Three years ago, a unanimous nine-person jury found President Trump liable for sexually assaulting and defaming E. Jean Carroll. Today, we are pleased to report that she has received the damages payment the jury awarded her as a result of that verdict,” said Carroll’s lead attorney, Roberta Kaplan.
Clarissa-Jan Lim is a breaking news reporter for MS NOW. She was previously a senior reporter and editor at BuzzFeed News.
Lisa Rubin is MS NOW’s senior legal reporter and a former litigator.
To the extent that the United States and Iran had a ceasefire deal in place to end the deadly, destabilizing war, that agreement has unraveled. Donald Trump has declared the ceasefire “over”; both countries have renewed their military strikes; and the American president is positioning the U.S. as a mercenary forcewith plans to charge tolls to pay for guarding the Strait of Hormuz.
As for the deal the Trump administration negotiated with Iran, formally known as a memorandum of understanding, or MOU, conservative host Hugh Hewitt asked the president whether the framework was “built to fall apart.” The Republican responded with an answer he hadn’t shared previously.
“It was built to test. It was a test,” Trump replied. “We didn’t know. It didn’t, look, memorandum of understanding, when you’re dealing with sleazebags, don’t mean much. And they don’t mean much when you’re dealing with honorable people, too, because it’s memorandum of understanding. It doesn’t mean much.”
The president went on to say that Iran “didn’t honor the test,” before suggesting that he had predicted from the outset that officials in Tehran would cause the agreement to collapse through noncompliance. “I said, ‘Watch, I guarantee. Watch.’ And they never, they never followed it.”
The apparent point of the on-air comments wasn’t merely to blame Iran for the unravelling deal, it was also to convey the suggestion that Trump knew all along Iran would cause the framework to collapse.
The trouble is, very recent history proves otherwise.
It was exactly one month ago when the president published a statement to his social media platform, announcing, “The Deal with the Islamic Republic of Iran is now complete. Congratulations to all!” About an hour later, seemingly eager to pat himself on the back, he added“This Great Deal will bring Peace and Security to the whole Region. Many presidents have tried to make Peace with Iran, and all have failed before me. The Leaders of the Region have, for the first time, found a President who can help them achieve real Peace.”
In the days that followed, not only did Trump continue to celebrate his alleged triumph, but the White House invested an enormous amount of time and effort in touting the deal, all while Vice President JD Vance went on a media tour, doing his best to defend the policy on the merits.
There was nothing about this being a “test.” Not a word was uttered about the idea that the deal “doesn’t mean much.”
If the president expects his post hoc rationalization of this failure to persuade anyone, he’s probably going to be disappointed.
Steve Benen is a producer for “The Rachel Maddow Show,” the editor of MaddowBlog and an MS NOW political contributor. He’s also the bestselling author of “Ministry of Truth: Democracy, Reality, and the Republicans’ War on the Recent Past.”
The Dictatorship
GOP’s Ron Johnson shares, then retracts, a conspiratorial ‘rumor’ about Mitch McConnell
We’ve known for a month that Republican Sen. Mitch McConnell of Kentucky was hospitalized, but neither he nor anyone on his team has been willing to say why. Over the weekend, McConnell finally took steps to end the speculation, issuing a statement to explain that he’s been recovering from a fall, followed by what he described as “a mild case of pneumonia.”
The statement was accompanied by a photograph of the senator in a hospital bed alongside his wife, former Transportation Secretary Elaine Chao. For good measure, the image showed a newspaper — specifically, Sunday’s Washington Post sports section — in McConnell’s right hand.
It stood to reason that the statement and photo would revive the conversation about why the former Senate majority leader hadn’t disclosed any of these details earlier — the lack of transparency surrounding his personal health has long been a point of concern — but some in conservative politics went furtherfloating assorted conspiracy theories about the authenticity of the image of McConnell and his wife.
The chatter was not limited to the far-right fringe.
Republican Sen. Ron Johnson of Wisconsin appeared Monday on conservative media channel Real America’s Voice, where the senator told host Eric Bolling, in reference to the McConnell image, “I’ve just heard from some other sources that was an older photo. So I really don’t know.” (He did not identify his alleged “sources.”)
The Wisconsin Republican went on to say that he hadn’t spoken directly with McConnell, but that he hoped his colleague has a speedy recovery so he can return to Capitol Hill and help advance Donald Trump’s agenda.
Hours later, when pressed by reporters about his conspiratorial on-air comments, Johnson said, “It was a rumor, don’t — discount it, just discount it. … I just heard it, so assume it’s false.”
The bigger picture matters. Johnson isn’t just some guy; he’s a three-term member of the U.S. Senate who was speaking to a national television audience about an ailing colleague. It’s the opposite of his job to amplify baseless “rumors” and add fuel to fringe conspiracy theories. As the Wisconsin Republican really ought to know, those in his position have a responsibility to avoid conspiratorial nonsense.
What’s more, there’s the GOP senator’s track record to consider. Shortly after Trump grudgingly left the White House after his 2020 defeat, he was effectively banned from most major social media platforms and made few television appearances. Around this time, The New York Times described Johnson as Trump’s successor as the GOP’s “foremost amplifier of conspiracy theories and disinformation.”
In the years that followed, Johnson seemed a little too eager to prove his critics right, peddling bizarre and easily discredited nonsense about Covid-19. And the Jan. 6 attack. And vaccines. And climate change. And the 2020 presidential election. And the 2024 presidential election.
Last year, the Wisconsin Republican reached new depths, becoming the only senator from either party to embrace fringe ideas from the so-called 9/11 truther movement.
With this in mind, his on-air comments about McConnell and what he’s “heard from some other sources” are consistent with what we’ve come to expect from Johnson, though this only makes matters worse for his unfortunate reputation.
Finally, that the senator walked back his own rhetoric seemed like a step in the right direction, though I’m curious about his motivation: Did Johnson urge reporters to “discount” the “rumor” he spread because he recognized it as irresponsible, or was he scrambling to better position himself as the next chairman of the Senate Budget Committee in the wake of Sen. Lindsey Graham’s death?
Steve Benen is a producer for “The Rachel Maddow Show,” the editor of MaddowBlog and an MS NOW political contributor. He’s also the bestselling author of “Ministry of Truth: Democracy, Reality, and the Republicans’ War on the Recent Past.”
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