Fed chief duped into fake interview with Russians posing as Zelensky

Federal Reserve Chairman Jerome Powell was fooled by a Russian duo pretending to be Ukrainian President Volodymyr Zelensky in a fake interview broadcast on Russian television, the central bank confirmed Thursday after multiple media reports.

The comedy duo of Vladimir Krasnov and Alexei Stolyarov, known colloquially as Vovan and Lexus, claims to have performed similar pranks on Canadian Prime Minister Justin Trudeau, Polish President Andrzej Duda, European Central Bank Chief Christine Lagarde and Elton John, the BBC reported Thursday.

The clips of the interview with Powell could serve to undermine the Fed’s messaging around the economy, which can have a real economic impact.

“Video now circulating on the internet shows Mr. Powell describing a sharp slowdown in growth in the U.S., following the bank’s efforts to rein in price rises,” the BBC reported, referencing its international media monitoring service.

A Fed spokesperson said an interview took place in January under false pretenses.

“Chair Powell participated in a conversation in January with someone who misrepresented himself as the Ukrainian president,” a Fed spokesperson told The Hill. “It was a friendly conversation and took place in a context of our standing in support of the Ukrainian people in this challenging time. No sensitive or confidential information was discussed.”

The Fed said the video of the interview appeared to have been edited and could not confirm its accuracy.

The incident has raised security concerns for the Fed because its bankers regularly deliver remarks that move markets and have a huge impact on the domestic and international economy.

Scores of public and private-sector analysts pore over remarks made by Powell and members of the Federal Open Markets Committee to discern the direction of the economy and make business decisions that can affect hiring and wage levels.

“The matter has been referred to appropriate law enforcement, and out of respect for their efforts, we won’t be commenting further,” a Fed spokesperson told The Hill.

The reports come as Russian Foreign Minister Sergey Lavrov visited New York to chair the United Nations Security Council this week and take a high-level meeting with United Nations Secretary-General Antonio Guterres.

Guterres traveled to Washington on Wednesday to meet with top appropriators in the House and Senate, as well as members of the House Foreign Relations Committee. Guterres was scheduled to meet with Secretary of State Antony Blinken on Thursday.

The flurry of diplomacy could have an impact on the war in Ukraine, which is now in its 14th month, though the conflict in the eastern part of the country extends further.

The Chinese government said Wednesday that a call had taken place between President Xi Jinping of China and Zelensky, a point of contact that U.S. officials say they had been encouraging.

A U.S. State Department spokesperson told The Hill the U.S. had been urging Xi to speak with Zelensky “for some time now.”

“It’s good that it happened. It is important that the PRC [People’s Republic of China] hear directly from Ukraine about why Ukraine’s security concerns and territorial integrity must be respected,” the spokesperson said.

“There is a role for China and other countries in supporting diplomatically an outcome consistent with the basic principles of sovereignty and territorial integrity,” they added.