- The U.S. Department of Justice has subpoenaed the Federal Reserve and threatened Fed Chair Jerome Powell with a criminal indictment over his congressional testimony about a $2.5 billion Fed building renovation project.
- Powell called the investigation a “pretext” to attempt to influence the Fed’s interest rate decisions, emphasizing that monetary policy should be guided by economic evidence, not political pressure.
- U.S. President Donald Trump denied knowledge of the DOJ investigation and dismissed suggestions it was intended to influence rates.
- Trump has repeatedly criticized the Fed for not cutting rates faster and even considered firing Powell, though legal protections limit removal over policy disagreements.
- Powell’s second term as Fed Chair ends in May, but he may remain on the Board of Governors until 2028. Trump could nominate a new chair as early as next month.
Federal Reserve Chair Jerome Powell Says DOJ Subpoenaed Central Bank
