Federal Reserve Chair Jerome Powell Faces Criminal Indictment from DOJ
2 weeks ago
Federal Reserve Chair Jerome Powell says the Department of Justice has served the central bank with grand jury subpoenas and is threatening him with a criminal indictment related to his testimony before Congress, escalating tensions between the Fed and the Trump administration.
Powell disclosed the subpoenas in a video statement Sunday night, saying the legal threat stems from his June testimony before the Senate Banking Committee about the Federal Reserve’s building renovation project and broader disagreements over the Fed’s interest rate decisions. Powell described the potential indictment as “unprecedented” and said it should be viewed in the context of ongoing pressure from the administration.
The move marks a rare and dramatic confrontation between the Justice Department and the nation’s central bank, which traditionally operates with strong independence from political influence. Powell framed the threat of charges as a response to the Fed’s decisions on monetary policy rather than genuine legal issues with the renovation project.
Financial markets have reacted to the news, with stock futures and the dollar weakened on Monday as investors weighed the implications for the Fed’s autonomy and U.S. economic policy.
This development adds a new chapter to an ongoing dispute between Powell and President Trump, who has publicly criticized Powell for not cutting interest rates more aggressively. The Justice Department has not publicly commented on the specifics of the investigation
Powell disclosed the subpoenas in a video statement Sunday night, saying the legal threat stems from his June testimony before the Senate Banking Committee about the Federal Reserve’s building renovation project and broader disagreements over the Fed’s interest rate decisions. Powell described the potential indictment as “unprecedented” and said it should be viewed in the context of ongoing pressure from the administration.
The move marks a rare and dramatic confrontation between the Justice Department and the nation’s central bank, which traditionally operates with strong independence from political influence. Powell framed the threat of charges as a response to the Fed’s decisions on monetary policy rather than genuine legal issues with the renovation project.
Financial markets have reacted to the news, with stock futures and the dollar weakened on Monday as investors weighed the implications for the Fed’s autonomy and U.S. economic policy.
This development adds a new chapter to an ongoing dispute between Powell and President Trump, who has publicly criticized Powell for not cutting interest rates more aggressively. The Justice Department has not publicly commented on the specifics of the investigation
